What Are The Forecast For Canberra Property Market In Upcoming Spring?
The Australian property market has performed exceptionally well in the past two years, 2019-2021. This has given way to a pivotal question springing among people: Would the nation’s real estate market ever usually function again?
Economists predict that property prices will keep hiking the following year too, as the Australian economy is witnessing stronger than expected gain momentum.
The loan finance continues to be at cheap rates. However, prices in some areas might get moderated and return to their standard long-term annual growth rate percentage of single digits; property prices will continue to rise in major capital cities.
As per the ANZ Bank forecast, house prices in Australia may rise by a substantial 17% high through 2021; however, it may ease off by 6% in 2022.
The Commonwealth Bank has also upgraded the property price growth forecast for the remaining 2021 from 8% to 10% in light of the current house pricing scenario. As per its executive officer, Mr. Comyn, the house prices will continue to grow in the next year; however, the rate will slow down in the upcoming February and March season of 2022.
As per the Westpac predictions, the housing market will continue to get strength by the price hike of at least 10% in the next year.
Impact of consistent rise in house prices
If the forecast for 2022 proves correct, the economy will see federal government intervention to keep a tab on price hike growth.
ANZ Senior Economist, Felicity Emmett, expects the Australian Prudential Regulatory Authority ( APRA) to develop macroprudential measures to keep a tab on house price growth in 2022 if the trend continues the same way.
Other banks are also expected to put restraints on lending.
Robust Economic recovery
Australia is experiencing a V-shaped economic recovery which was not anticipated. The nation’s GDP is higher than the beginning of the pandemic, which indicates a speedy recovery post-pandemic that has surprised most economists.
Avail the benefits of down to earth interest rates
As for the current data, more Australians are willing to spend on housing than other asset classes like shares or bonds as people seek safe-haven investments.
Additionally, people opt for more expensive homes during the pandemic as a home investment benefits tax freedom if they sell a Family home.
Housing demand and supply
As the mortgage rates remain low for an extended period (reaffirmed by the Reserve Bank of Australia), housing demand will continue to outweigh supply, supporting the price hike. There are more buyers than sellers. This helps the house pricing market continue to skyrocket, particularly for freestanding homes in Sydney, Melbourne, and other capital cities, with no indication to taper off anytime soon.