I believe the housing market will continue at strong levels across the country for some time yet. I anticipate a plateauxing effect relatively soon however.
Despite the article below, I think there is a strong potential for a future shock in the Australian property market.
The factors in play are: FOMO; historically low interest rates; World record Australian household debt; low to real negative wage invreases; undersupply and a rebounding economy with associated, and I believe unwarranted euphoria.
I am critical of the Federal govt's offer of 2% deposits for first home owners and fear this will not only exacerbate an already overheated market (particularly in Sydney and Melbourne) but could very well result in crippling mortgage stress especially for the young borrowers when interest rates escallate as they surely must in due course.
Already there are signs, internationally of inflationary pressures, predominanly resulting from years of unfettered Cenrtal Bank stimuli.
I may be wrong, but I urge extra prudence when considering purchasing a property in the curremt environment.
Property valuers predict more price hikes as Aussies give up on home ownership (9news.com.au)
