New Price Highs Ahead

Economists are now predicting Australian house prices will reach new heights in November.
National Australia Bank’s, Gareth Spence and Mark Browning predict major capital city
prices will continue to rise. The pair say the biggest influence on prices is that supply remains depressed and demand
strong. And in bad news for would-be home buyers, they say house price growth is staying ahead of
income growth. CoreLogic data, backs the price growth theory, with increases across the capital cities in the
September quarter. Australian Bureau of Statistics figures show Australia’s property market
is now worth $10.1 trillion following the rise in home values. That’s a steep increase from 2015, when the residential real estate market was worth $6 trillion and a steady rise since hitting $9 trillion in October 2021.
NAB believes the undersupply of property will get worse before it gets better.
“Apart from the early COVID dip, annual dwelling approvals haven’t been this low since
2013,” it says.