Jan 25, 2022
I believe property prices will continue to grow strongly in 2022, although you will not see similar predictions from any of Australia’s leading bank economists.
They’re mostly forecasting very small price growth this year and I’m quite sure they will be proven wrong, yet again.
When it comes to predicting property price growth, economists have a quite woeful track record – they invariably got it wrong - and usually spectacularly wrong.
The biggest mistake that we see most economists make, is that they talk about Australia as a single market.
They also tend to err on the side of negativity, because they fail to truly understand real estate markets and under-estimate the ability of real estate to deal with economic upheaval.
As a result, economists usually, frequently, get it wrong with their price forecasts.