Australian house prices: Real estate market boom unsustainable, banks fear, and could spark problems soon
House prices across Australia continue to soar to insane levels despite lockdowns, and unlikely voices are warning it’s out of control.
At the start of the coronavirus pandemic, as the world teetered on the edge of unprecedented uncertainty, economists issued a dire prediction for Australia’s housing market.
It would experience huge losses unlike anything we’ve seen in modern history, with estimates ranging from a 10 per cent slump right up to a devastating 30 per cent collapse.
And yet, despite mass job losses, widespread lockdowns, the shuttering of the economy and a resulting recession, and the disruption of trade, those forecasts never eventuated.
In fact, median housing values across Australia have surged 15.8 per cent over the first eight months of 2021, and are 18.4 per cent up over the past year.
Prices are higher than they were before anyone knew what Covid-19 was and have…