The boss of online real estate hub REA Group has rejected claims by some of Australia’s largest banks that house prices could fall by up to 20 per cent over the next 18 months | zoesam93 property
REA Group boss Owen Wilson has refuted claims by some of Australia’s largest banks that house prices could fall by up to 20 per cent over the next 18 months, pointing to record high listing volumes and rising rental prices which will force investors into the market.
“The relationship between house prices and listings, people assume they’re absolutely correlated and that’s not necessarily the case,” Wilson said. “A prediction of a 20 per cent pricing decrease...we don’t subscribe to that. We think they will go down something like 5 to 10 per cent over the next 18 months, but that is predicated on further rate rises.”
. NAB predicted that house prices could plunge more than 20 per cent over the next 18 months in Melbourne and Sydney and by 17.7 per cent across the country. “The other part of the market that people don’t spend much time thinking about is the rental market. We’re seeing rental vacancies are still at record lows and rental rates have increased at double digits in many, many markets. What this will do is it will inevitably attract more investors back to the market.