{"id":25347,"date":"2020-05-22T09:59:34","date_gmt":"2020-05-21T21:59:34","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=25347"},"modified":"2020-05-22T09:59:34","modified_gmt":"2020-05-21T21:59:34","slug":"reia-rubbishes-30-property-price-drop-forecast","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/reia-rubbishes-30-property-price-drop-forecast\/","title":{"rendered":"REIA rubbishes 30% property price drop forecast"},"content":{"rendered":"

PHOTO: Adrian Kelly<\/strong><\/p>\n

The Real Estate Institute of Australia<\/a> (REIA) has shot down suggestions that property prices could fall by 30 per cent, calling such a prediction \u201chighly questionable\u201d and unable to be relied upon \u201cwith any degree of confidence\u201d.<\/p>\n

A statement from the institute\u2019s president, Adrian Kelly<\/a>, said: \u201cWe are in unprecedented times and anyone that suggests they can forecast with any acceptable degree of probability is being highly fanciful.<\/p>\n

\u201cWe can only look at what is happening in the marketplace at the moment as well as in previous times of high unemployment to provide pointers to likely outcomes.\u201d<\/p>\n

\"'Rich<\/a><\/div>\n
\n
\n

\u2018Rich Dad Poor Dad\u2019 self-help author urges Australians to stop buying property NOW<\/a><\/h2>\n<\/header>\n<\/div>\n

The president flagged that the current situation shows listings are decreasing while enquiry levels from prospective buyers increase.<\/p>\n

He said: \u201cIt is simple economics that when supply decreases and demand remains that prices edge upwards.<\/p>\n

\u201cThey certainly don\u2019t drop.\u201d<\/p>\n

He also pointed to recent forecasts from the Housing Industry Association that indicated the supply of new housing will be \u201cseverely constrained\u201d over the next 12 months\u00a0\u2014 by almost 50 per cent.<\/p>\n

\u201cThis does not suggest a scenario of supply exceeding demand\u00a0\u2014 a prerequisite for falling prices,\u201d he added.<\/p>\n

Acknowledging that higher levels of unemployment will constrain house prices by an anticipated 10 per cent, Mr Kelly said such falls have been experienced before and we should look at what happened to housing prices then.<\/p>\n

\u201cHistory shows us that in the early 1990s, we had a sustained period of unemployment above 10 per cent yet median house prices remained stable,\u201d he said.<\/p>\n

READ MORE VIA REB<\/a><\/p>\n

MOST POPULAR<\/span><\/h3>\n