— Property

The Major Banks Expecting Double-Digit Growth in House Prices

2021 has started solidly as most property markets across the country continue to see rising prices. According to the latest data from CoreLogic, house prices are up once again in February, and it appears that the big banks are also predicting significant price gains over the next 12-24 months.

Rising property prices are also the story that we are hearing out of Australia’s central banks, which have recently been updating their property forecasts for 2021 and beyond.

For the most part, the outlook appears to be incredibly strong for homeowners and investors as prices continue to be boosted by record-low interest rates and the fallout from the various Government incentives that we’ve seen over the past 12 months.

Bank Forecasts

CBA updated its price forecasts recently, and it is now very bullish on property across the board. We must note that CBA was one of the most bearish when COVID first hit, and they have now completely changed their tune. CBA expects house prices in our major capital cities to rise by 8% in 2021 and then by 14% by December 2022.

They predict Perth and Darwin to be the strongest markets in 2021, with 10% and 12% gains, respectively. It’s also worth noting that Perth and Darwin were two markets that have been the hardest hit over the past five years, falling in value, when the East Coast of Australia boomed.

NAB’s price forecasts are also very bullish and are almost in line with that of CBA. NAB is expecting to see house prices rise by 7.9% in 2021 and 6% in 2022.

Gemma Broadhurst
Gemma Broadhurst is a 23-year-old computing student who enjoys extreme ironing, hockey and duck herding. She is kind and entertaining, but can also be very standoffish and a bit evil.She is an Australian Christian. She is currently at college. studying computing. She is allergic to milk. She has a severe phobia of chickens

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