News
House price fall of 5pc tipped for next year
Tuesday 13th of July 2004
However, the bank's economists say most of the recent house price boom has been justified, mainly by a big migration boom. House prices rose about 22 per cent in the year to March.
"A boom, yes, a bubble ready to crash...not likely," Westpac Bank economists say.
On average, the housing market is 10 per cent "above fundamental valuation", the bank says in a report just out. That is a bigger "over-valuation" than at any time in the past 20 years, but there was no evidence of a bubble.
Prices would keep rising this year, by about 5 per cent, but then fall as much next year, before moving sideways.
"You may be able to pick up a property cheaper next year," the report says.
A recent report in The Economist magazine suggested there could be an across-the-board fall of as much as 15 per cent, though most bank economists favour a smaller dip – some say 5 per cent or 10 per cent at most.
Read More - Opens in a new window
"A boom, yes, a bubble ready to crash...not likely," Westpac Bank economists say.
On average, the housing market is 10 per cent "above fundamental valuation", the bank says in a report just out. That is a bigger "over-valuation" than at any time in the past 20 years, but there was no evidence of a bubble.
Prices would keep rising this year, by about 5 per cent, but then fall as much next year, before moving sideways.
"You may be able to pick up a property cheaper next year," the report says.
A recent report in The Economist magazine suggested there could be an across-the-board fall of as much as 15 per cent, though most bank economists favour a smaller dip – some say 5 per cent or 10 per cent at most.
Read More - Opens in a new window
Comments (0)
Latest News