It’s that time of the property cycle again when the perpetual property pessimists emerge warning of a monumental housing crash that is set to wipe out at least 50% of Australian’s wealth. They’ll yell it from the roof tops trying to chase their headlines and telling everyone who’s prepared to listen. Firstly, just look at their terrible track records. These same people have been predicting this every year for the last decade and they’ve been wrong.
I like to use the analogy of a gearbox in a car. Right now, the property market is moving in 6th gear, racing along and breaking records. The market will move out of 6th gear and into 3rd or 4th.
This has been confirmed by the research and forecasts of Australia’s big 4 banks. ANZ’s latest update predicted that property prices will continue to increase by over 6% in 2022. To put that in perspective for our readers, on a $700,000 property that will equate to almost $50,000 in capital growth.
On the back of the “property crash” media beat up, I’ve seen an increase in buyers anxiously waiting for property prices to fall. With decades of experience and over $370million in property acquisitions under my belt I must warn that in 12 months’ time you’ll be disappointed. If you only listen to one thing that I’ve said make it this, “There is never a bad time to buy real estate, if you can afford to buy real estate then do so, ensuring your acquisition fundamentals are solid and the research stacks up”.
In closing, yes, the housing market will slow down and it needs to. The current growth rates are unsustainable long term. However, our improving economy and the opening of our international borders next year will underpin demand for housing and continued sustainable growth.