Bank forecasts continue to rise

Bank forecasts continue to rise

There has been quite a bit of interest lately in the number of property sales being achieved around Victoria despite the challenges of the lockdown restrictions. The willingness of buyers to purchase property without the ability to physically inspect is a further sign of the levels of confidence in the current market.

We have also seen further indications of confidence in the market from the Banks, with the ANZ being the latest to raise its forecasts on price increases.

Despite several states being impacted by lockdowns at the moment, the ANZ upped its house price forecasts for most of Australia’s capital cities. They forecasts a rise of 20 per cent this year in Melbourne, with Canberra, Sydney, Brisbane and Hobart all tipped to experience rises of between 20 and 24 per cent in 2021.

The comments from ANZ Senior Economist, Felicity Emmett, were interesting. She has been quoted in the media this week as saying, “We’ve updated our forecasts because of how strong prices have been; that includes through the lockdown period. We did think by this time of the year that the momentum in prices would have pulled back.”

She also added, “In Melbourne, where the clearance rate had been harder hit by lockdown restrictions, which include a complete ban on property inspections, prices are still holding up well.”

She said she expected prices would continue to fare better than they had during the city’s extended lockdown last year, when there was greater uncertainty around the impact of the pandemic.

Figures like these will give many Victorian property owners a few extra reasons to look closely at their property plans for the year ahead, particularly with the start of the Spring market now just a few days away. With this in mind, the next few weeks could be an ideal time to discuss your plans with an independent and objective Advocate from Ian Reid.

Feel free to give the team a call this week on 9430 0000 to talk about your options. You’ll also find lots of helpful suggestions for property sellers in our free booklet, “Fatal Real Estate Traps Exposed”