'Dwelling prices are expected to lift by 15 per cent over this two-year period.' 9News
The pair argue that lower interest rates, a mild recession and loan repayment holidays will all act as price superchargers to both increase property prices in growth markets and protect current values in currently risky areas such as Melbourne.
According to their outlook, both Mr Evans and Mr Hassan see the property market reacting to the pandemic in four distinct phases. The first is an initial "COVID shock", in which prices fall. Both economists believed that with the exception of Melbourne most of the property price plunges had already taken place.The second phase is a stabilisation of the capital city markets through the December 2020 and March 2021 quarters.
The third is a minor softening of prices through to September 2021, followed by a fourth phase of two-year growth. "The fourth phase will span at least two years when distressed loans from deferrals have worked through the system – and prices react strongly to ongoing low rates; improved affordability; a strengthening economic recovery and policy stimulus," the economists write.Waiting two years could prove fruitful for some owners.
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