RESIDENTIAL PROPERTY
AFTER a shallower than expected decline in housing prices, capital city prices may reach the end of 2023 unchanged, before experiencing a moderate increase of 2024.
ANZ has upgraded its housing price forecast, after improving auction clearance rates, strong population growth and recent property price increases.
“After just a 9% decline in capital city housing prices over the past year, the recent upturn has come as a surprise to us,”
“We previously thought the sharp rise in interest rates (both delivered and forecast) would continue to weigh on housing prices through most of 2023,
NAB also heavily revised its house price forecast earlier this month citing similar reasons for its new prediction of an annual fall of 4% in 2023...
While AMP chief economist Shane Oliver maintained expectations of a 15% to 20% peak-to-trough, placing greatest importance on...
Despite higher levels of mortgage stress over recent months, low levels of supply and demand exceeding expectations have had a greater impact.
This as new listings sit 20% below their five-year average, with total listings at their lowest since 2010.
Surging immigration, after levels came to a standstill throughout the first two years of the pandemic, when paired with...
While auction clearance rates have, over recent months, risen to the mid-60s, consistent with 10% annual housing price gains.
Additionally, cash rate hikes haven’t fully transferred to mortgage rates. With competition between banks resulting in...
“We did expect that strong household income growth and large savings buffers would provide a cushion for the fall in house prices.
“Indeed, the early recovery in housing prices suggests that the household sector remains resilient despite headwinds from...
ANZ is now expecting that prices will increase by just 2% in 2023, down from the previous forecast of 4%.