Property Prices In Australia Are Set To Fall
Perhaps you may think that real estate is the way to get rich quick. Think again. However, if you are looking for a place to live in, then your hard-earned money is safe as houses. There are some analysts and economists who say that the housing price boom in Australia has already hit its peak and there are even some that are hinting that recession is coming soon. However, there are some industry insiders that say that it will only be a price correction and that the public need not panic since this is part of the normal cycle.
Macquarie, an investment bank has given its statement that prices of houses are set to fall by at least 7.5 percent staring March of next year and that recovery in the market will commence during the second half of 2017. Analysts noted that auction clearance rates, credit growth, settlement volumes and house prices as well as the dollar value in settlements are showing signs of slowing down. Economists are also forecasting on a quarter on quarter basis that housing prices will fall from March 2016 quarter before it will successfully recover from the third quarter of 2017. It will have a 7.5 percent fall from its peak to its trough.
It likewise said that the issue eased the growth in population just as the housing supply surged above the trend and thereby raising the risk of prices having to go through a rapid adjustment. Macquarie contended that the Reserve Bank may be forced to cut the rates further by 25 basis points in order to support prices and demands. This scenario is of course dependent on the speed of the adjustment taking place. Credit Suisse has likewise warned about the deterioration of the buying conditions in other regions particularly in NSW. The trend of weakening buying of the Chinese in the market, out of cycle rate hikes on mortgages and macro-prudential tightening are having impacts on the demand and sentiment in the market.
The real estate price for granny flats WA would also be affected in this predicted fall in the housing prices in Australia.
