Australian housing

The housing sector is turning a corner: ANZ

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.