The property crystal ball

property crystal ball
Can anyone really read the property crystal ball?

Over the last 3 years in particular, every institution, investor, government statistician and barstool commentator, has had an opinion on the direction of the east coast property market.

“It’s definitely going to tank 30%”, “It’s going to flat line for a decade”, “It’s going to fall 5% this year and 10% the year after”. The accurate number is an across the board average increase of around 25% (2021), and unsurprisingly not one of the above pundits predicted that result.

Driven by record low interest rates and a once in a lifetime FOMO (fear of missing out) effect, property prices have sky-rocketed above numbers that experts thought was impossible.

Fast forward to the first four months in 2022 and the so called experts are again vocal with their crystal ball predictions.

Big price drops, multiple interest rate increases putting households under heavy financial pressure.

Fuel prices and cost of living pressures have households frustrated, stressed and nervous about what lays ahead.

With a federal election on foot it seems both the government and opposition smile on the inside when seemingly minor events take the real focus of the most important topic 

  • Cost of living 
  • Housing affordability 

Given the current situation, punters could be forgiven for turning off the news and stop reading the tabloid news.

Additionally, based on recent history and the horrible track record of the so called experts, it might be time to throw out the malfunctioning property crystal ball.

Very interesting times ahead, hold on tight.