Sydney house prices expected to slow down
The housing market has seen an even more significant price increase over the past few months. NAB’s Quarterly Australian Residential Property Survey Q2 2021 estimate a dwelling house price growth of 18.5% in 2021 and 3.6% in 2022 for combined capital cities in Australia. So far this year, Australian property prices have already risen 16.1%, making it the highest annual price growth in 17 years (CoreLogic).
There will continue to be solid growth, but according to NAB’s survey, housing prices are expected to slow down by the end of the year for the next 1-2 years thanks to:
- The financial impact of ongoing COVID-19 lockdowns.
- The overwhelming influence of overall housing affordability.
- The gradual fade of record low interest rates.
- The potential introduction of regulatory action.
An immediate indication of the ‘slow down’ trend is that, in recent months, we have seen a significant fall in the national auction clearance rate and moderate growth in new mortgage contracts.
The settling of the house pricing boom is favourable for those with a limited budget looking to purchase a property.
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