Property BOOM

Housing boom near peak, experts warn

PHOTO: The property boom is coming to and end

Sydney’s housing boom is approaching its peak, economists and property experts have warned.

Nearly 60 per cent of the real estate pundits and economists polled in a recent survey by comparison site Finder.com.au said the market would peak before the end of the year.

It comes as Sydney price growth recently hit a 30-year high, with property values ballooning by an average of $38,000 in June alone.

Eleven of the 28 experts polled by Finder said the market would peak in the final quarter of the year, while eight said the peak would come in the next three months.

The remaining nine experts said the peak would likely occur in 2022.

Properties have continued to fetch big prices even in lockdown, but there is debate about how long such conditions will last. Picture: Justin Lloyd

Properties have continued to fetch big prices even in lockdown, but there is debate about how long such conditions will last. Picture: Justin Lloyd Source: News Corp Australia

Housing experts who forecast a peak in late 2021 included NAB chief economist Alan Oster and Griffith University economics professor Tony Makin, among others.

Those who saw the peak coming sooner included University of Western Australia macroeconomist Jakob B. Madsen and Macquarie University professor Jeffrey Sheen.

Sydney’s previous market peak was back in mid-2017 and was followed by a two-year period of falling prices in which the median dropped nearly 15 per cent.

The experts were divided on many of the reasons for the coming peak but one common belief was that housing was becoming unaffordable.

Amid an environment of stagnant wage growth, Sydney house prices grew by nearly 20 per cent over the 2020/21 financial year, according to CoreLogic.

READ MORE VIA NEWS.COM.AU