Category: Home Prices

Westpac says Australia’s housing market boom is showing clearer signs of slowing with sentiment pointing to a decline in turnover through the first half of 2022. More importantly, the medium term outlook has shifted materially with an interest rate tightening cycle now expected to see a broad-based correction phase begin later this year, continuing throughout 2023 and into 2024.

According to Westpac’s February 2022 Housing Pulse report, the housing market boom is showing clear signs of slowing with sentiment pointing to a decline in turnover through the first half of 2022.

The report detailed how inflation and labour market challenges are shaping the view on interest rates, which will impact the property markets and further divergence among states.

As lenders already begin to raise rates, ahead of the Reserve Bank of Australia’s cash rate rise, and house prices soar, a housing “correction” is forecast for 2023 and 2024.

Nationally, prices lifted 2.5 per cent since November 2021, which was a fall from the peak of 7.1 per cent in May 2021, but an annual gain of 21.1 per cent.

The “extraordinary” surge in prices has seen affordability deteriorate with new projections now forecasting house prices will “flatten” by May this year, ahead of a move into outright correction in the December quarter.
Overall, that would see a net gain of just 2 per cent over 2022.
House prices are then forecast to fall 7 per cent in 2023 and by a further 5 per cent in 2024, before stabilising towards the end of that year.

Nationally, the peak to trough fall of 14% is around the average of corrections seen historically.

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.