09 Apr Seven things you need to know about the Australian property market
Key Points
- The Australian housing market remains far more complicated than optimists and doomsters portray it to be.
- Australian housing is expensive and highly indebted; but it’s very diverse; mortgage arrears remain low; interest rates still matter; but it’s been chronically undersupplied for years; forecasting home prices is very hard; and housing has similar long-term investment returns to shares.
- The surge in immigration is estimated to push the housing shortfall to around 200,000 dwellings this financial year.
- Price gains are expected to be around 5% this year with high rates dragging but the supply shortfall supporting prices. The risks are finely balanced.