21 Mar Have Australian home prices bottomed? Probably not.
Key Points:
- Capital city property prices so far in March are on track for a 0.6% or so gain, led by Sydney, based on CoreLogic data.
- The main positives for the residential property market are improving demographic demand, constrained supply and tight rental markets.
- Against this the full impact of interest rate hikes is yet to be seen with home buyer capacity remaining well down.
- As such, while there is a chance that prices have bottomed, our base case remains for a 15-20% top to bottom fall in prices with the current bounce likely to be short lived.
