Australia-wide, we are seeing price growth. But those rushing in may well regret it.
Most experts see price rises continuing for some time. But some, such as the boss of CBA, think the rate of these price rises will moderate.
And, because currently 75 per cent of mortgage applications are from owner-occupiers, it’s hard to see the market being subject to a speculative frenzy driven by investors wanting to make a quick buck.
Speaking to a parliamentary enquiry, CBA boss, Matt Comyn, said “We expect house prices to continue to grow through this year and next but not at the rapid levels we have seen in the first two months of the year.”
He noted that although there had been strong price growth in Perth and Darwin the median prices were still well below previous highs.
And, with some university suburbs, such as Macquarie Park, down 8.1 per cent, herein lies the rub; sure things are positive – with interest rates low and employment strengthening, the only way is up.
But it’s not up everywhere and, until the borders open, there is simply not the demand to maintain the pace.
There is speculation that the banking regulator (APRA) will have to intervene to calm things down but, take away the sugar hit of the Home Builders Grant and we believe that sooner-or-later the market will reach an equilibrium and calm down.
Rush in now and you may regret your haste.
For those who are being pipped-to-the-post at the moment – opportunities will appear later this year.