Three reasons the housing supercycle is just getting going

by · Australian Financial Review

The Economist

After the financial crisis of 2007-09, global house prices fell 6 per cent in real terms. But before long, they picked up again and sailed past their pre-crisis peak. When COVID-19 struck, economists reckoned a property crash was on the way. In fact, there was a boom, with mask-wearing house-hunters fighting over desirable nests.

Then from 2021 onwards, as central banks raised interest rates to defeat inflation, fears mounted of a house-price horror show. In fact, real prices fell by just 5.6 per cent – and now they are rising fast again. Housing seems to have a remarkable ability to keep appreciating, whatever the weather. It will probably defy gravity even more insolently in the coming years.

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