PHOTO: Sydney, Australia
- Property analyst Michael Matusik fears decade-long stagnation in house prices
- Looking at 140 years of data, he pointed to long periods of no real value growth
- NSW Premier Gladys Berejiklian has extended Sydney’s lockdown until July 30
- Treasurer Josh Frydenberg revealed he thought era of long lockdowns was over
Australian capital city house prices could stagnate for a decade with Sydney bracing for another fortnight of lockdowns.
Property market analyst Michael Matusik, the director of Matusik Property Insights, said a very strong run of growth was likely to end next year.
‘After this market peak, the housing market price-wise is likely to settle into a somewhat long period of stagnation,’ he said.
‘Although the stagnation time periods have been shortening over time – there appears to be little left in the tank to help drive future house prices.
‘I do think that the next price plateau could be as long as a decade.
‘Maybe even longer. History shows that such a period of inactivity does happen.’
Australian capital city house prices (pictured are Kellyville homes in Sydney) could stagnate for a decade with Sydney living with another fortnight of lockdowns. Property market analyst Michael Matusik, the director of Property Insights, said a very strong run of growth was likely to end next year
With Reserve Bank interest rates at a record low of just 0.1 per cent, and banks offering mortgage rates of just 2 per cent, house prices have surged to record highs during the pandemic, with investors piling back in.
During the first six months of 2021, Sydney’s median house price surged by 18.5 per cent to an even more unaffordable $1.224million, CoreLogic data showed.
Melbourne’s equivalent values have climbed 11.4 per cent in the half year to June, reaching $929,769.
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