According to some recent research from ANZ Bank, the answer is NO.

Posted in: Insights, News

07/09/2021

Will Delta Derail our Property Market?

According to some recent research from ANZ Bank, the answer is NO.

The report states that our housing markets remain in very good shape with national house prices predicted to continue rising strongly, even in those unfortunate cities experiencing lockdowns and other restrictions.

According to the report, ultra low interest rates, high savings buffers and ongoing fiscal support from government are likely to continue to support the housing market.  

In fact, ANZ have increased their 2021 forecasts a little. Since March, the Bank has been forecasting national price gains in our capital cities of around 15-20%, but our markets have outperformed those numbers and a new forecast suggests price growth of just over 20%.

On the downside, ANZ expects that price gains will moderate given the increasing uncertain outlook, slight rises in fixed rates and increasing talk around the introduction of macro prudential measures by regulators to keep a lid on excessive lending.

Despite that, they still predict a national average growth of around 7% in 2022, and a touch over 5% for Adelaide, which is still a very respectable figure.

Currently, the Adelaide property market remains tight. Over the course of the year, more properties have been selling than there have been new listings to replace them. Demand is high, supply is low. And with increased interest from interstate buyers the problem becomes exacerbated.

However, there are signs of a gradual increase in new listings, but even then it will be a long time before we get back to a ‘normal’ market equilibrium, meaning upward price pressure will remain for some time yet.

Call Bernie Lewis Home Loans on 8300 8300 or email http://info@bernielewis.com.au