It’s one of the most common questions we’re being asked right now – when will house prices fall? What’s important to remember here is that absolutely nobody has a crystal ball to give you the correct answer – it’s all speculation – but at Direct Collective we have a long history of calling it right….
It’s one of the most common questions we’re being asked right now – when will house prices fall? What’s important to remember here is that absolutely nobody has a crystal ball to give you the correct answer – it’s all speculation – but at Direct Collective we have a long history of calling it right. We deeply analyse data, and collect accurate information to make well-informed predictions.
If you read the news this week, you would have seen headlines like this:
Aussie house prices to drop 10 per cent in 2023 as interest rates soar: CBA
Home prices to fall 10% in 2023: CBA
‘Twilight’ for Australia’s housing boom as prices to fall 10% in 2023, CBA says
On Monday, Commonwealth Bank of Australia released its latest forecast predicting house prices will continue to grow by 7 per cent next year, before falling 10 per cent in 2023.
Headlines such as “house prices to drop 10% in 2023” can be misleading for hopeful buyers who are trying to wait out this so-called property ‘boom’ to enter or re-enter the market (we have covered extensively in previous articles why, in fact, this is not a property boom).
When we go back to the CBA predictions (+7% in 2022, -10% in 2023), if they are correct, the reality is there will actually only be a 3 per cent difference between what Australia is experiencing now and in 2023 when it comes to housing prices.
This is compared to ANZ who is predicting prices to rise 6 per cent in 2022, and fall 4 per cent in 2023, and Westpac who is forecasting prices to rise 8 per cent next year, and fall 5 per cent in 2023. All predictions only have a 2-3 per cent difference to today’s prices, and traditionally banks don’t have a great track record for calling it right in the first place.
So what do we do?
When buying or investing in property it’s important you get your information from reputable sources, who can dissect all current data correctly. The recent headlines could possibly cause people to ‘wait and see what happens’ with the market, and then two years down the track they can’t afford a home because prices have potentially continued to rise. Here on the Sunshine Coast, it’s likely this is what’s going to happen. We predict across the next two years we will see a continued trend of high growth in house prices (possibly up to 20 per cent each year) then a long period of little growth.
The region is in a unique position, because interstate migration to Queensland is tipped to be at its highest post COVID, and the majority have indicated they want to move to the Sunshine Coast.
There’s already a housing supply issue here, so when you combine that with a surge in population and the amount of infrastructure investment here, it’s unlikely the market will drop within the next two years.
If you’re looking to invest in property, contact us today to book in for a free consultation with one of our expert coaches, so we can map out how you can take advantage of this unique market. There’s an opportunity to make money in any market if you have the right support.