PHOTO: Linda Xu on Unsplash
New analysis has painted a more positive outlook for the property market in the coming months.
Domain analysis found while there was reason for optimism, conditions were likely to remain subdued in most parts of the country in the latter half of the year.
Despite fears of 20-30% property price drops, the property market has stabilised in recent months, and most indicators point to a rebounding but sluggish market.
Domain economist Trent Wilshere said a number of factors had led to the more optimistic outlook.
“Business and consumer confidence have rebounded, employment and job advertisements have started to recover and business output is rebounding,” Mr Wilshere said.
“The OECD (Organisation for Economic Co-operation and Development) expects Australia’s economy to perform better than most other countries in the year ahead.
“But even with the better than expected recovery, economic conditions will remain subdued, with the unemployment rate and underemployment likely to remain elevated until at least 2022.”
Mr Wilshere said clearance rates and auction numbers were returning to normal levels, buyer confidence was rebounding and rental markets were stabilising.
How the property market will look at the end of the year
Mr Wilshere said the most likely outlook for the property market was for prices to fall modestly in some areas and be broadly steady in others.
“But given the unprecedented nature of the COVID-19 recession, the outlook for the property market for 2020 is highly uncertain,” he said.
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