House Prices To Slow Before Falling: ANZ
The bank is forecasting housing growth to ease in the next two years.
< 1 min
House price growth is expected to peak before the end of 2021 before moderating to 6% nationally in 2022 and falling by 4% in 2023, according to the ANZ.
Nationally, the housing boom of 2021 is expected to lift prices to above 21% by the end of the year. Sydney will reach a peak of 27% — the strongest growth since the late-1980s boom.
However, according to the ANZ’s senior economists Felicity Emmett and Adelaide Timbrell a slowdown is in sight.
“With tighter credit, rising fixed mortgage rates and a large increase in stock on the market combined with decreased affordability all set to dampen price growth in 2022,” they wrote in the latest housing market research.
Capital city prices overall are expected to lift by a further 6% in 2022 as the post-pandemic boom eases.
According to the ANZ’s outlook, the strongest gains will be made in Brisbane (9%), Hobart (8%) and Melbourne (7%). Sydney’s long and steep surge will flatten to 6% next year.
“While affordability constraints and a better supply-demand balance will help slow the market, the path of interest rates will be critical to developments in the housing sector,” the ANZ team wrote.
The ANZ analysts expect the Reserve Bank of Australia to leave the cash rate on hold – it is currently at 0.1 per cent – until the first half of 2023.
By the end of 2023 the forecast prices nationally are expected to have fallen by 4%. Sydney is expected to feel a 4% drop while Melbourne, 2%.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The construction sector is roaring back to life in some Australian states while others languish in the doldrums
< 1 min
The home building market is on the rebound as building approvals rise, new data reveals.
Information from the Australian Bureau of Statistics shows that the total number of dwellings approved in August was up 7 percent seasonally adjusted, with apartments leading the way.
Private sector house approvals gained 5.8 percent in August while private sector residences excluding houses were up 9.4 percent. This follows on from a decrease of 14.6 percent in July and indicates a solid recovery in the Australian construction sector as the end of the year approaches.
Approvals for total dwellings were strongest in the two largest states, with Victoria recording a rise of 22.2 percent and NSW 12.5 percent. Western Australia also saw a significant rise of 12.3 percent.
In Queensland, the results were less positive for the sector, with total dwelling approvals falling by -26.9 percent. Tasmania also experienced a drop in approvals in August, down -10.1 percent and South Australia -6.9 percent.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
