The International Monetary Fund has warned of a potential “sizeable” property price crash as Australia continues to battle its housing crisis. The International Monetary Fund (IMF) has issued a stark warning about a potential crash in property prices.
They have cautioned that the housing crisis in Australia has remained resilient and could result in a “sizeable” drop in home values. The fund is urging policymakers to act quickly, as prolonged uncertainty around housing markets could lead to weakening financial stability and escalating debt levels. It has expressed concerns over low incomes and high household debt, warning that these factors could still dent the Australian property market. The IMF also suggests that measures should be taken to reduce barriers to home ownership which include increasing affordable rental properties and providing incentives for first-time buyers. As Australians continue to grapple with the current state of their housing markets, it is clear that immediate action is needed if we hope to avoid a major price crash.
The IMF has revealed what should come as no shock news to Aussies looking to buy a home, that the Aussie property market is among the most unaffordable markets in the developed world. According to the IMF’s analysis the average Australian couple hold needs to spend 40% of their income to be able to afford to purchase a home. The IMF is warning that the market is at risk of a major crash and with interest rates rising many analysts believe we will see a further softening of prices.
In Queensland there have been high levels of discounting in the Sunshine Coast, Brisbane’s western suburbs and the Darling Downs – Maranoa areas, this also includes Toowoomba (sorry Charlie). This is thought to be the Queensland market cooling after an influx of interstate buyers really shot up prices during the peak of the pandemic and throughout 2021.
There are many areas around the nation experiencing “discounting” with the top three areas of discounting in New South Wales being Sydney’s eastern suburbs, Richmond-Tweed area (which also includes Bryon Bay) and Sydney’s northern beaches areas. This is a slow down of the sea change and tree change areas, that we are currently experiencing.
The top three areas of discounting in Melbourne being Melbourne’s inner eastern suburbs, the Mornington Peninsula area and Ballarat areas. Ballarat shows that country areas are not immune to these price falls.
For those looking to purchase a house in 2023 the advice would be to consider and prepare for further rate rises in 2023.
