PHOTO: Australian housing
After considering their initial view of a 10 per cent housing drop “too pessimistic”, ANZ economists now feel that the housing market bottomed out last month, and will rise throughout 2021.
‘Australian housing: a strong 2021’ credits the forecast price rise to owner-occupiers, with low interest rates attracting those with secure employment – both first home buyers and upgraders.
The report suggests that October 2020 was the nadir of the price cycle, and predicts that prices will rise by roughly 9 per cent throughout 2021.
“Our view that house prices would decline around 10 per cent, peak to trough, has proven too pessimistic: low rates have trumped factors like elevated unemployment and low population growth,” ANZ economists Felicity Emmett and Adelaide Timbrell said.
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