{"id":34581,"date":"2021-09-15T17:49:36","date_gmt":"2021-09-15T05:49:36","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=34581"},"modified":"2021-09-15T17:49:36","modified_gmt":"2021-09-15T05:49:36","slug":"when-house-prices-are-expected-to-drop","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/when-house-prices-are-expected-to-drop\/","title":{"rendered":"When house prices are expected to drop"},"content":{"rendered":"

PHOTO: House prices<\/strong><\/p>\n

An expert has revealed when they believe property prices in Australia will ease so people looking to buy are in with a shot.<\/p>\n

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Millenials should see easing prices on homes in a few years when supply catches up to demand, a parliamentary inquiry has been told.<\/p>\n<\/div>\n

Younger people are currently paying 7.3 times more for their first property than their parents\u2019 generation.<\/p>\n

Record-low interest rates and a rapidly rising population have also caused the housing market to become fiercely competitive.<\/p>\n

Treasury\u2019s Macroeconomic Division head Crystal Ossolinski told a parliamentary committee on Tuesday housing supply had not kept pace with population.<\/p>\n

\u201cWe’ve had some periods of strong population growth in Australia, particularly in the early 2000s, where population growth has risen quite rapidly,\u201d she said.<\/p>\n

\u201cSupply in the housing market is constrained \u2026 it takes a very long time to build dwellings.\u201d<\/p>\n

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\"Being<\/div>\n

Being on contract, temporary or casual work can make it difficult for Millenials to get approved for a home loan. Picture: Brendon Thorne\/Bloomberg via Getty Images.<\/strong><\/em><\/div>\n

But she said there had been a strong response to supply issues which should start to ease prices in coming years.<\/p>\n

\u201cWe\u2018re going to have relatively strong increases in the number of dwellings,\u201d she said.<\/p>\n

\u201cWe have had over 200,000 (building) approvals over the past year, and that will play out in supply over the next couple of years.\u201d<\/p>\n

Ms Ossolinski also highlighted that interest rates were not expected to drop any further, with the number actually expected to increase within the next few years.<\/p>\n

\u201cThose factors point to a period now where we have supply coming in and demand is stabilising or tapering,\u201d she said.<\/p>\n

The inquiry also heard that the increase in people studying at university before starting their careers, along with the shift towards contract and casual work was creating barriers to entering the property market.<\/p>\n

\u201cThe extent to which you work on contracts, or have insecure sources of income is certainly a barrier to getting financed,\u201d Department of Treasury Social Policy Division head John Springer told the committee.<\/p>\n

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