Seven things you need to know about the Australian property market
Key points
– The Australian housing market remains far more complicated than optimists and doomsters portray it to be.
– Australian housing is expensive and highly indebted; but it’s very diverse; mortgage arrears remain low; interest rates still matter; but it’s been chronically undersupplied for years; forecasting home prices is very hard; and housing has similar long-term investment returns to shares.
– The surge in immigration is estimated to push the housing shortfall to around 200,000 dwellings this financial year.
– Price gains are expected to be around 5% this year with high rates dragging but the supply shortfall supporting prices. The risks are finely balanced.
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Original Author: Produced by AMP_AU and published on 09/04/2024 Source