AMP Capital has forecast 10% growth in house prices nationally in 2020, but growth is expected to slow to around 5% in 2021. Senior economist Diana Mousina says factors such as the interest rate cuts in 2019 and the potential for further monetary policy easing in 2020 should offset any impact that rising household debt levels and tighter lending standards may have on house prices:
AMP Capital senior economist Diana Mousina said there is still enough demand to drive prices in Sydney and Melbourne to new record highs within months.
Ms Mousina said in a note to clients that AMP expected “national home prices to increase by around 10 per cent in 2020”.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
