Australia’s leading property economist busts some myths and gives his forecasts for 2022
Jan 24, 2022
As we start a new year it’s interesting to look back and reflect on the challenging year we experienced in 2021, and how well the Australian economy and Australians in general have survived.
It wasn’t really that long ago that there were credible predictions that tens of the thousands of Australians would lose their lives, the health system wouldn’t cope, there would be mass unemployment and the economy would fall into an abyss.
But fortunately, 2021 finished with our economy in recovery mode, and throughout the year we experienced a once in a generation property boom with our property markets breaking multiple records and finishing at record high levels.
Last year the number of suburbs where the median house price is more than $1 million has doubled, as a have the number of suburbs where the median price is over $3milion and the average Australian household is wealthier than they ever have been.
No doubt there are challenges ahead, but there’s also lots of good news to start off the year and that’s what I discussed with Dr Andrew Wilson, chief economist of My Housing Market, in a 90 minute online live Masterclass at the end of the year.
And the feedback I received after the event was amazing – I’ve never had as many people during event leave such positive comments in the chat room or as many positive emails afterwards, so I thought I must share this with you as a subscriber to my podcast.
This particular episode of my podcast is much longer than usual because Dr Wilson gave so much great information, but it’s not the whole event.
But it’s definitely worth staying to the end to hear Dr Wilson is forecast for property around Australia for 2022.
If you happened to be on that event, I think it’s worth listening to the gold that Dr Andrew gave us once again, and if you weren’t at the event I suggest after listening you going to the live webinar replay where you can see many of the charts that Andrew and I discussed. I’ll leave a link in the show notes.
Some of the Topics Discussed in Dr Andrew Wilson’s Presentation
- The big growth markets are starting to stabilize and push buyers out of the market
- The effect migration has on the property market
- The underlying supply position in Australia
- The changes in predictions for interest rates
- Interest rates generate house
- The effects of the reserve bank’s rate cuts
- Why Brisbane is a boom market now
- Adelaide’s recent strong performance
- The relationship between higher interest rates and lower house prices, and vice versa
- Affordability and rental crises
- Whether Australia will be affected by the inflation overseas
- Specific industries that are having challenges
- Why higher interest rates are being predicted over the next year or so
- Why the bank economists are suggesting locking into loans with today’s interest rates
- The out-of-cycle interest rate rises
- How often the forecasts change
- What the rental markets are like at the moment
- The latest data on house prices
- Whether there are concerns about the drop in auction clearance rates
Links and Resources:
Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us
Dr. Andrew Wilson, Chief Economist My Housing Market
Watch the replay of the whole Masterclass with Dr. Andrew Wilson by clicking here
Shownotes plus more here: Australia’s leading property economist busts some myths and gives his forecasts for 2022
Some of our favourite quotes from the show:
“We’re not just going to have an affordability crisis, we’re going to have a rental crisis where all these people are going to need to live somewhere.” – Michael Yardney
“Think outside the square. Stop following everyone else’s catchy little headlines like a bunch of sheep.” – Dr. Andrew Wilson
“It looks like now the top affluent areas and the gentrifying suburbs are overperforming moving forward.” – Michael Yardney
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