NAB predicts that the second half of 2022 will be a 'turning point' for the Australian property market.
In its latest Residential Property Survey, NAB economists forecast that the housing boom may start to lose steam in the second half of this year.
Off the back of forecasting that the cash rate will rise in August 2022, the big bank believes that the housing market will begin to 'flatten' in late 2022.
This will see dwelling prices rise by 3% in 2022, before falling by up to 10% in 2023.
NAB economists said it's important to remember this comes after a 'very sharp run up' over the past year, where property prices increased by a third in some areas.
This is near identical to CommBank forecasts, which were released late last year.
In 2020 the major banks predicted sharp house price falls by up to 30% in a 'worst case scenario'.
Propertyology's property analyst Simon Pressley in late 2021 said to 'ignore' property price predictions as they're often inaccurate.
"Society is fast turning into a bunch of sooks," Mr Pressley told Savings.com.au.
"Australia is fast approaching full unemployment for the first time in decades, wage growth prospects are rising with it, infrastructure investment is a record high, there's lots of industry stimulus, and households have more cash squirrelled away than ever. Why the negativity?"
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| Variable | More details | ||||||||||||
| FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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| Variable | More details | ||||||||||||
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Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
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| Variable | More details | ||||||||||||
| FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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| Variable | More details | ||||||||||||
| NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY. | Variable Home Loan (Principal and Interest)
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Variable Home Loan (Principal and Interest)
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- Fast turnaround times, can meet 30-day settlement
- For purchase and refinance, min 20% deposit
- No ongoing or monthly fees, add offset for 0.10%
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.
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