Low house prices the new normal says CBA
New figures from Commonwealth Bank show the annual average pace of housing appreciation in Australia has been 1.8 per cent since the financial crisis, substantially below the 8 per cent average over the prior 20 years.
It warned that a lower pace of appreciation was the “new normal.”
“There is a risk that some purchase decisions that were made on the expectation of higher long-run average growth rates may have to be reassessed,” it said.
Property analyst Mark Armstrong predicted appreciation would be slowest for home owners in outer suburbs, who could see negative to zero growth in values for as many as 20 years.
Source: The Age