With Australia in a COVID-induced recession, residential property is not immune to falling economic activity. Yet housing prices are proving surprisingly resilient. Only months ago, economists were forecasting a housing price slump of 20% or more. Now, most have revised their forecasts to price falls of between five and 10%.
For the first time in years, the planets seem to be aligning for homebuyers and property investors. Interest rates are falling, property prices largely appear to be stabilising and constraints on bank mortgage lending have been relaxed.