How high will prices go? One of Brissie’s stalwart property analysts, Michael Matusik, is tipping a national price surge of 25 per cent … possibly.
He’s crunched some numbers looking at the relationship between housing finance and house prices and the results point to an increase of up to 14 per cent for the 2021 financial year.
Looking ahead to the 12 month period ending September 2021 the annual increase could be as high as 25 per cent.
Breaking it down to the capital city level, Matusik tips Perth to have the greatest growth spurt, followed by Adelaide, Melbourne, Sydney, Brisbane, Darwin, Hobart and Canberra.
What could slow the price increase? An interest rate hike for one. But the Reserve Bank of Australia has signalled it won’t raise interest rates for some time yet. While Matusik bets they’ll move sooner than they’ve indicated, he can’t see it happening this side of a federal election so that pushes any possible hike out to 2022 at least.