With inflation finally under control, the Reserve Bank now has no option but to cut interest rates, this could lead to the biggest property market boom ever.
When high population growth creates a shortage of housing and the purchasing power of property buyers increases, the inevitable result is a housing boom.
These indicators are all currently lining up and the only missing piece, which is a fall in interest rates, is about to occur.
It’s a combination that has only occurred a few times in our history, but whenever it took place, the result was a massive rise in buyer demand and escalating housing prices.
These boom conditions last occurred nearly eighty years ago!
After the end of World War II, Australia had an acute housing shortage, record population growth, skilled labour shortages, low unemployment and interest rates were falling.
If this looks familiar, it’s because the exact same combination of boom indicators is taking place once again.
It was the biggest and quickest lift in property values our country has ever experienced, and because the same conditions are unfolding right now, we can expect a similar property market boom to occur.
Of course, not all suburbs and towns will benefit equally.
The growth will be low or may not take place at all in some locations, while those where buyer demand exceeds the supply of housing are likely to boom.
Extract Thanks: Property Update by Metropole 31-10-24
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