With inflation finally under control, the Reserve Bank now has no option but to cut interest rates.
I'll explain why this could lead to the biggest property market boom ever.
When high population growth creates a shortage of housing and the purchasing power of property buyers increases, the inevitable result is a housing boom.
These indicators are all currently lining up and the only missing piece, which is a fall in interest rates, is about to occur.
It’s a combination that has only occurred a few times in our history, but whenever it took place, the result was a massive rise in buyer demand and escalating housing prices.
These boom conditions last occurred nearly eighty years ago
After the end of World War II, Australia had an acute housing shortage, record population growth, skilled labour shortages, low unemployment and interest rates were falling.
If this looks familiar, it’s because the exact same combination of boom indicators is taking place once again.
This graph, produced from ABS data, reveals that house prices trebled in the six years after the war ended.
It was the biggest and quickest lift in property values our country has ever experienced, and because the same conditions are unfolding right now, we can expect a similar property market boom to occur.
Not all locations will benefit equally
Such a perfect alignment is extremely rare, and offers you a once-in-a-lifetime opportunity to secure your financial future from property investment.
Of course, not all suburbs and towns will benefit equally.
The growth will be low or may not take place at all in some locations, while those where buyer demand exceeds the supply of housing are likely to boom.
About John LindemanJohn Lindeman has well over a decade of experience researching the nature and dynamics of various types of assets at major data analysts and is a leading property market researcher, author and commentator. For more information visit Lindeman Reports.
2 comments
MW2024-10-09 10:27:53
Aren't you being overly optimistic? What were price-to-income ratios back then? Were people already relying on the Bank of Mum & Dad before the boom even started?
Aren’t you being overly optimistic? What were price-to-income ratios back then? Were people already relying on the Bank of Mum & Dad before the boom even started?
