Early signs foreign buyers may be returning to the market, while interest rates weigh more heavily on local homebuyers. NAB’s outlook for dwelling prices is broadly unchanged – we still expect a slowing in national prices through 2022, before a moderate fall of around 10% in 2023.
The NAB Residential Property Index printed at a steady +58 pts in Q1 (+59 pts in Q4), buoyed by solid rents as house price growth softened.
The survey also points to slower national house price growth in the next 1-2 years, with WA the clear out-performer and VIC trailing.
Rents are however expected to grow well above average survey levels and outpace price growth in all states.
Our outlook for property prices is broadly unchanged in annual terms – where we expect an overall rise of around 2.5% this year, before prices decline by around 10% in 2023.
Overall, the housing market has turned slightly quicker in Sydney and Melbourne than we had expected in early-2022 but out-performed in the smaller capitals.
We see this as an orderly correction in house prices with the economy and labour market continuing to perform strongly and wage growth strengthening.
The holiday season shopping flurry can offer some small businesses the opportunity to prosper… and others a time to take stock for the new year. Both call for careful preparation – particularly in the current environment. NAB Executive Small Business Ana Marinkovic shares her top tips.