Claims that Australia is heading for a 50 per cent drop in house prices are ‘outrageous’, economists say
Well these claims are developing into an extremely hot topic as economists are forecasting and Politicians are floundering. None the less this is a testing period for the Australian Residential Market, for if ever we are looking for supply and demand to come into play, now is certainly the time.
As a Property Specialist it is times like now that we dig deep as people you know personally are asking you for real guidance. In a 60 Minutes episode on Sunday 21/2/16, A Jonathan Tepper, founder of macroeconomic research group Variant Perception, predicted a property market crash of 30 per cent to 50 per cent.
Well this is a strong and bold claim and when we look deeper into the substance of how Mr Tepper substantiates and supports his claims one would be reasonably concerned, on paper it looks scary.
To break down the Australian Property Market in its current stance one would have to break down the entire Australian economy, this is no simple task for the best of them.
However, every economic market has its pockets and real estate is no exception.The claims that have been made did not elaborate on any specific markets, currently there are markets in Australia that are possibly over priced, maybe not to the extent of the above claims but we are witnessing pockets in the market that have depreciated substantially. Most of these markets are associated with the mining and resource industries to date.
In the event that you are considering investing into the Australian real estate market, seek professional advise
Where ever there is a debit there is a credit, seek professional advise from local experts that focus on what they do.