Mon. Dec 6th, 2021

news, local news, real estate, Canberra real estate, Canberra real estate, real estate prices, CBA

Canberra property prices are expected to fall by 10 percent, but not before the “phenomenal rise” in prices peaks in 2022, the Commonwealth Bank of Australia has predicted. In its latest forecast, the lender said the Australian housing market was in the “twilight of an incredible boom”, spurred by record low mortgage rates. The CBA expected real estate prices to rise further next year, albeit at a slower pace than 2021, before falling in 2023. MORE REAL ESTATE NEWS: Based on a 22 per cent growth. in 2021, national prices are forecast to rise a further 7 per cent. years and fall by 10 per cent. in 2023. Canberra properties, which have experienced a growth of 26 per cent. this year, is also expected to increase by 7 per cent. before a fall of 10 per cent. in 2023. Although the fall in prices would be welcome news for some, it still means that the prices of Canberra properties will be 23 percent higher in 2023 than they were in early 2021. The largest price declines are forecast for Sydney and Hobart, where house prices are set to fall by 12 per cent in 2023. Across the capitals, house prices are expected to fall by 11 per cent, slightly more than unit prices, which are expected to fall by 7 per cent. In the report, CBA Head of Australian Economy Gareth Aird said the forecast is based on the expectation that the Reserve Bank of Australia will adjust the cash rate to at least 1.25 per cent in the third quarter of 2023. “The cash rate is expected to rise because the economy will have full employment , and annual wage growth will have pushed to the desired level of 3 per cent, “he wrote.” Stronger wage growth will partially offset rising interest rates in the real estate market. In addition, a boost in population growth when the international border reopens will boost the underlying demand for bricks and mortar, especially urban flats. We expect house prices to fall slightly more than apartment prices during 2023. “Recent CoreLogic data revealed that the gap between wage growth and house price growth was greater in ACT than anywhere else in Australia. Over the past 20 years, wages are at across the private and public sectors rose 81.5 per cent in ACT while house values ​​rose 224 per cent. Aird said that while price corrections were expected, Australian property prices were still rising at a reasonable pace. “A cooling market is not the same as declining market, “he wrote.” We expect that the pace of monthly gains will slow down quite significantly by mid-2022, primarily due to higher fixed mortgage rates. “Subdued buyer expectations, general fatigue and an expectation of RBA rate hikes will likely to lead to a peak in national property prices by the third quarter of 2022, said Mr Aird.Our journalists are working hard to deliver local, up-to-date news to the community. Here’s how you can continue to access our trusted content:

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