House prices grew nationally by an average of 2.1% in February and economists, including Commonwealth Bank’s Gareth Aird, are predicting that house prices nationally will rise 16% in the next two years.
CBA predicts prices will lift 9% in 2021 and 7% in 2022. Given that several markets nationally – including Canberra, Hobart, Darwin, Regional NSW, Regional Tasmania and Regional SA – are currently growing at annual rates well above 10%, these forecasts may be conservative.
Elliott says the question of whether the boom is healthy depends on where you sit in the market. “If you’re an owner, it probably feels pretty healthy,” he says. “If you’re trying to get into the market, it probably doesn’t.
“I think extreme moves, either up or down, are never very good if they’re sustained for a period of time. So, it’s starting to get into that area where people are starting to raise a few eyebrows, wondering if it’s a bit unhealthy at these levels.”