Australia’s property market is set for a big year with price growth to accelerate sharply, according to a leading economist who predicts a number of suburbs will again double.
Chief economist Nerida Conisbee (realestate.com) said 2021 is looking like a bumper year for price growth as positive momentum
continues.
Ms Conisbee predicts there will be a sharp acceleration in housing prices, driven by record saving interest rates and cheap and easy finance.
“The Australian economy is no longer in recession, a vaccine is now available, interest rates are at record lows and access to finance continues to ease,” Ms Conisbee said.
“All of those factors are combining for a really massive year.”
Ms Conisbee noted that conditions started to look quite strong after November, particularly as Victoria came out of its extended lockdown.
There were fears that prices could plummet during the coronavirus pandemic and recession, but despite some initial periods of decline in some markets, house and unit prices mostly rose across Australia during 2020.
A number of economists have forecast strong growth in prices over the next two years. Westpac economists said the housing market is moving into a sustained boom, predicting dwelling prices will rise by 20% in total over 2021 and 2022.
Property prices have already grown in the majority of Australian suburbs in 2020, resulting in many people questioning if now is the time to sell or buy.
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