ARE PROPERTY PRICES GOING TO FALL IN 2025?

If you are worried that property prices might fall in 2025, this next chart is one you have to see.

Above is a chart looking at property prices all the way back to 1991. What we can see is there have been six periods in total where nominal house price growth was negative. What that means is there have been six periods where house prices have fallen.

However, look at how much they actually fell.

You can see that the biggest price fall was in 2009, just after the global financial crisis where property prices on average fell 5. 4%. Then we saw another price fall back in 2011.  Prices fell 2.34%. Then we saw property prices falling in 2018-2019. The price fall was less than 5%.

However, look what's happened every time property prices have fallen. I’ve updated the chart below.

You can see that property prices have risen dramatically after every small price fall. I expect we’ll see the same in 2025 for 2 reasons:

Number one, interest rates have now been cut, and I personally expect we’ll see more rate cuts in the near future, which increases people's borrowing capacities. So there will be more people entering the property market.

Secondly, the housing shortage we have in Australia, which right now is bigger than it's ever been on record. So what does this mean for you? Well, it shows that if you can afford to buy an investment property right now, and you choose to wait and see, we have over 30 years of data, which shows that the odds are you'll regret not jumping in and buying in the right areas sooner.

Written by Niro Thambipillay - https://www.investmentrise.com.au/

Investment Rise YouTube