Property market doomsayers need more perspective

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Once interest rates stabilise, we can expect the market to consolidate and begin to show signs of recovery.

, which will be taking cues from movements in employment, investment spend, consumer and business confidence and the housing market in the months to come.While the RBA target cash rate of 3.35 per cent is significantly higher than the record lows of recent years, it remains well under the record high of 17.5 per cent in 1990.

In the short term, it’s going to get worse. Interest rates are set to rise, and property prices have further to fall.– most likely in the second half of the year.The extraordinary price growth rates experienced during the pandemic period were never going to last, and were always set to experience some form of re-set.It’s important to remember the dip has come off record highs. Nationally, residential property prices reached their strongest annual growth on record in 2021, rising 23.

Those who bought good quality property assets during the COVID-19 market highs, may be feeling a little anxious as they experience softening prices, but should feel confident of strong capital growth over the longer term. Australian rent values have lifted more than 22 per cent from September 2020 to January 2023, the largest increase since CoreLogic records began almost 18 years ago.

 

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Lol

You mean after the recession, bankruptcies, homelessness, job losses and suicides reach their peaks.

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