The bank updated its earlier forecast based on the strength of Australia’s housing market and it’s not alone. Domain reports that other big banks are also tipping a price growth bonanza.
“The updated forecasts are similar to those put out by the Commonwealth Bank (CBA) earlier this month,” Domain reported.
“Gareth Aird, head of Australian economics at the CBA, said he expected national dwelling prices to rise by 20 per cent this year before dropping to 7 per cent growth next year.
“Meanwhile, NAB’s updated forecast in July has pegged house prices to jump 18.5 per cent in 2021 and 3.6 per cent next year, across the combined capitals, while Westpac has forecast a jump of 18 per cent this year and 5 per cent in 2022.”
So will the growth train stop anytime soon?
Affordability constraints were already starting to take effect on buyer demand, ANZ reported. But interest rate rises in the years to come would be the circuit breaker to curtail further growth spurts.
Check out the house price growth ANZ tips for capital cities this year:
- Canberra 24%
- Sydney 23%
- Hobart 23%
- Brisbane 21%
- Melbourne 20%