We’ve never seen anything like it!  Housing prices just keep rising higher and higher.  And let’s face it, most of us have been completely priced out of the market by now.  But to make matters worse, prices are forecast to lift even higher again next year, picking up by a further 8%.  What’s a homebuyer to do?  Will we ever get a reprieve?

Well, actually – yes.  Eventually.

Westpac is tipping that we’ll see a welcome change by 2023.  Perhaps even as early as late 2022.  Here’s what dwelling prices are set to look like in each major city.

 

Sydney:  2021 up 27% / 2022 up 6% / 2023 down 6%

Melbourne:  2021 up 18% / 2022 up 8% / 2023 down 6%

Brisbane:  2021 up 22% / 2022 up 10% / 2023 down 1%

Perth:  2021 up 15% / 2022 up 8% / 2023 down 1%

Adelaide:  2021 up 18% / 2022 up 8% / 2023 down 2%

Hobart:  2021 up 25% / 2022 up 6% / 2023 down 2%

Nationally:  2021 up 22% / 2022 up 8% / 2023 down 5%

 

So, you can see the gradual decline that’s forecast over the next 12-24 months.  And while the property market has gone berserk in spite of COVID, there could be some long-awaited relief on the not too distant horizon.

Interest rates are expected to increase from their current 0.1% to 1.25% by 2024.  It’s what the banks are calling the correction phase.  There’s a balancing of the scales that’s need to bring the market back into order.  It includes a tightening of lending criteria and more barriers for non-homeowner entry.  But Westpac cautions that raising rates any higher will do more damage than good, placing significant stress on household finances.  So, it’s a delicate dance of slowly but surely.

That’s at least some favourable news.  But it still leaves many house hunters in a bit of a financial pickle.  So, is there an alternative way to get into the market sooner?  You bet!  It’s via our property syndication model.  Why not drop in on us instead of waiting around for prices to drop.  Book an appointment today.