After a bleak forecast earlier this year (of up to 15% declines in property prices), some Big 4 bank economists now expect strong growth (up to 5 per cent) in 2021, followed by further 6 per cent lift in 2022.
Specifically, the NAB are revising their own forecasting to reflect this thanks to a “jump in sentiment based on stimulus measures and record low interest rates”. But they’re not alone, with ANZ and Commbank following suit with their own forecasting flips.
The potential success of the much-discussed COVID vaccine has also created a positive outlook in the market, both for buyers and sellers considering the economic outcomes a virus-free market will produce.
Further to all of this, an extended period of low interest rates helping boost prices alongside lending accessibility mean that the long-term outlook is also looking great even while there is some concern that a potential slow in population growth might hinder this type of forecast (border closures are apparently to blame…).
Interestingly, some economists expect that house price growth would likely be stronger than the apartment segment over the next couple of years (great for first home buyers getting in soon!) but that doesn’t mean apartments aren’t going to do well, and as a savvy investor, you’ll note that both options are still incredibly viable in a market that’s doing well, especially when chosen carefully…
So, as always, we’ll remind you that there are many markets in one region, and even multiple in each city, which is why seeking sound advice from experts is the place to start when considering your first or next property. Equally as important however, is structuring any kind of finances correctly. Doing this will mean you maximise benefits, mitigate risky investing or home purchases while putting a plan in place that’ll see you achieving your property goals comfortably.
If you’d like to discuss what a property outlook like this could mean for you and your property goals, talk to our mortgage and investment specialists today. It costs you nothing and could literally change your life.
Call us on 1300 469 840 or send us a message via our website here: https://www.at-finance.com.au/contact-us/ we’re here to help make your goals a reality.