One of Australia’s largest banks is warning Australians of anticipated record-breaking price jumps in the national housing market.
The combination of record-breaking low interest rates, strong demand for housing and relaxed lending standards since COVID-19 sees the prices in the housing market being pushed higher and higher.
In December 2020, ANZ predicted Australian housing rates to rise by 9%.
Only four months later and ANZ economists have forecasted Australian’s to see house prices to jump almost double what was previously anticipated, with research indicating a national 17% jump in 2021.
Housing market rise according to capital city
ANZ research predicts housing prices in Perth and Sydney will rise by 19% in 2021, closely followed by Hobart where housing prices are expected to rise by 18%.
Hobart is followed by Melbourne, Brisbane, Canberra, and Darwin, where house prices are expected to jump 16%.
Lastly is Adelaide, which is anticipated to see the lowest rise of 13% in 2021.
ANZ senior economist Felicity Emmet said, “By June we expect prices to be rising at a more moderate pace given the end of government programs like JobKeeper and HomeBuilder, and a lift in fixed mortgage rates.”
“By year end though, we expect the regulators will step in with macroprudential controls to address the overheating market, with the exact measures likely to be dependent on how the market develops over the next six months or so.”
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