Looking at the numbers, it’s easy to understand why some forecasters were expecting home prices to fall up to 32 per cent.
Based on the average household size of 2.6 persons, the combination of reversing net migration and a mass exodus of temporary visa holders reduced total housing demand by around 375,000 homes, compared with where it would have been without the pandemic. However, quantifying how much each of those respective factors is driving the currently booming housing market is far more challenging.If low rates are the overwhelming driver of the current demand for housing, then the boom may have quite a while still yet to run. After all, despite the prospect of rising rates on the horizon, they are not going back to 2019 levels in the immediate future.
This move was also backed by multiple state premiers and federal Opposition leader Anthony Albanese, signalling bipartisan support for Australia remaining relatively closed off from the rest of the world.With the housing market already down more than 1 million participants since March 31 last year and the nation’s international borders to remain closed until around mid-2022, that figure will only continue to grow relative to where it would be without the pandemic.
For AMP chief economist Shane Oliver, there is rising concern that weak population growth due to low immigration could drive a slowdown in the housing market.
Blackrock and Vaanguard will be managing the lot...
Don't worry both Labor and liberal government will always make sure house prices go up out of reach of the peasents. Politicians and thier rich thieving mates own a lot of real-estate so they will never allow house prices to drop.