Dwelling price predictions continue to incorrectly reflect market movements and create unnecessary fear in home buyers’ minds, says the managing director of Money Quest & Buyers Choice, Michael Russell.
Unfortunately, “dooms dayers” create unnecessary stress and anxiety for borrowers and home buyers, who out of fear may defer their purchasing decisions to their financial detriment. Meanwhile, dwelling prices may increase while borrowing capacities decrease — a sad financial outcome for home buyers.
Economists’ data-driven predictions on market downturns have historically forecasted much larger and longer market declines than what has ever occurred.
Dwelling price forecasters are always wrong — yes that’s right, always! Two years ago (May 2020), all four major banks estimated an 11 per cent dip in dwelling prices for the period between June 2020 to June 2021, and prices ended up rising 21.5 per cent. They missed the margin by 32 per cent!
Comments