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Property prices forecast to jump 22% this year!

Westpac has upgraded its property price forecasts for 2021 and 2022, but expects prices to contract in 2023.

Westpac now believes Australia’s median property price will jump 22% this year, compared to its previous forecast of 18%.

The big bank also expects an 8% increase next year – up from its previous forecast of 5% – but with most of that growth coming in the first half of 2022.

As previously forecast, Westpac then expects prices to go backwards in 2023, by 5%.

Westpac gave five reasons why it expects price growth to start slowing next year:

* Affordability pressures will build
* Lending restrictions will tighten
* Expectations will grow for the Reserve Bank to start lifting official interest rates in early 2023
* Slow population growth will affect demand in some markets
* Increased homebuilding will affect supply in some markets

#property #realestate #homeloans
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Property prices forecast to jump 22% this year!Westpac has upgraded its property price forecasts for 2021 and 2022, but expects prices to contract in 2023.Westpac now believes Australia’s median property price will jump 22% this year, compared to its previous forecast of 18%.The big bank also expects an 8% increase next year – up from its previous forecast of 5% – but with most of that growth coming in the first half of 2022.As previously forecast, Westpac then expects prices to go backwards in 2023, by 5%.Westpac gave five reasons why it expects price growth to start slowing next year:* Affordability pressures will build
* Lending restrictions will tighten
* Expectations will grow for the Reserve Bank to start lifting official interest rates in early 2023
* Slow population growth will affect demand in some markets
* Increased homebuilding will affect supply in some markets#property #realestate #homeloans

Homebuilding activity set to boost economy in 2022 ...

A large number of detached houses are set to be built in 2022, according to new data from the Housing Industry Association.

New house sales in September were 2.3% higher than August, according to a monthly HIA survey of the biggest home builders in the five largest states.

Sales in the September quarter were lower than the same period in 2020, when the HomeBuilder incentive (which ran from June 2020 to March 2021) was in full swing. Yet sales were up on the previous two years:

* 7.4% higher than the September 2019 quarter
* 0.6% higher than the September 2018 quarter

HIA economist Tom Devitt said these strong new home sales numbers will lead to a boost in home building activity through to the second half of 2022.

“When combined with the ongoing strength in renovation activity, the home building sector will continue to pull the economy forward for at least the next year,” he said.

#property #realestate #homeloans
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Homebuilding activity set to boost economy in 2022 ...A large number of detached houses are set to be built in 2022, according to new data from the Housing Industry Association.New house sales in September were 2.3% higher than August, according to a monthly HIA survey of the biggest home builders in the five largest states.Sales in the September quarter were lower than the same period in 2020, when the HomeBuilder incentive (which ran from June 2020 to March 2021) was in full swing. Yet sales were up on the previous two years:* 7.4% higher than the September 2019 quarter
* 0.6% higher than the September 2018 quarterHIA economist Tom Devitt said these strong new home sales numbers will lead to a boost in home building activity through to the second half of 2022.“When combined with the ongoing strength in renovation activity, the home building sector will continue to pull the economy forward for at least the next year,” he said.#property #realestate #homeloans

Australians cautious about their financial position ...

Financial wellbeing has been trending upwards since late 2020, but is still lower than pre-pandemic levels, according to the ANZ Roy Morgan Financial Wellbeing Indicator.

In the year to March 2020 (when the pandemic began), Australians rated their financial wellbeing at 60.7.

That fell to 56.6 in the year to November 2020, but has since climbed to 58.0 at the end of June 2021 (see chart).

The other three key indicators have followed a similar path from March 2020 to November 2020 to June 2021:

* Australians’ ability to meet their financial commitments changed from 73.0 to 67.1 to 68.9

* Feelings of financial comfort changed from 56.0 to 50.7 to 52.5

* The ability to cope with future financial setbacks changed from 53.2 to 51.9 to 52.8

#money #personalfinance #wellbeing
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Australians cautious about their financial position ...Financial wellbeing has been trending upwards since late 2020, but is still lower than pre-pandemic levels, according to the ANZ Roy Morgan Financial Wellbeing Indicator.In the year to March 2020 (when the pandemic began), Australians rated their financial wellbeing at 60.7.That fell to 56.6 in the year to November 2020, but has since climbed to 58.0 at the end of June 2021 (see chart).The other three key indicators have followed a similar path from March 2020 to November 2020 to June 2021:* Australians’ ability to meet their financial commitments changed from 73.0 to 67.1 to 68.9* Feelings of financial comfort changed from 56.0 to 50.7 to 52.5* The ability to cope with future financial setbacks changed from 53.2 to 51.9 to 52.8#money #personalfinance #wellbeing
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