THE BIG 4'S PROPERTY PROPHECIES: OOPS, THEY GOT IT WRONG!
Well, well, well, folks! It seems the bigwigs in the banking world have had to eat their own words, and guess what? We're loving every bite. The National Australia Bank, in particular, made a bold prediction at the beginning of the year, declaring that property prices were destined to plunge in 2023. But hold onto your hats, because they've done a full-on "woopsy-daisy," admitting they were way off the mark. In fact, they're now singing a different tune, one that has us all grinning from ear to ear. Property prices are not on the brink of a crash. Quite the opposite – they're set to skyrocket.
Let's break it down... In the city of Sydney, NAB is boldly forecasting a jaw-dropping surge of nearly 12% in property prices over the next two years. Melbourne's not far behind with a 10% prediction of its own. Brisbane? Yep, you guessed it, also nearly 10%. And don't think Perth is left out of the party – they're looking at a potential 12% spike as well.
But honestly these property price predictions might just be the tip of the iceberg. If you take a gander at the data from our trusty friends at CoreLogic, you'll see that Sydney's median price already soared by a sizzling 7.4% between February and July. Now that's what we call a market that's heating up faster than a summer's day!
So, what made NAB do a complete 180? Well, it all boils down to a little thing called supply and demand. See, there's an imbalance in the property universe right now. Reduced borrowing capacity and affordability concerns may be lurking in the shadows, but there's a bigger beast in town: a colossal demand for properties in Australia. We're talking about folks who are practically chomping at the bit to get their hands on a piece of real estate Down Under.
Sure, we've seen a few brave souls struggle with their mortgages, and yes, there's been a slight uptick in distress sales. But hold your horses, because it's nowhere near enough to offset the massive demand that's fueling the property price rocket ship. Buckle up, folks, because we're in for a wild ride, and property prices are poised to keep ascending to the heavens!
Now, here's the kicker, and it's a juicy one: even with the market inventory playing hard to get, consumer sentiment is currently as low as it was during the GFC. It's almost like the average Australian hasn't quite grasped the magnitude of the housing shortage that's about to hit us like a ton of bricks. Folks, it's about to be bonkers out here in the property game!
So, if you've ever dreamt of owning a piece of the Aussie dream, here's a little nugget of wisdom for you: Do it this spring.
Adele Oliver # 0439 005 705
