Australia is undergoing a tremendous economic shock right now as a result of the (just beginning) impact from the coronavirus, whose impact has been broadly unappreciated. Houses are bought on credit and there is a major credit impact happening right now with very high risk of recession. Furthermore, animal spirits towards housing and consumption and investment are about to undergo a serious reversal. With such a large sentiment change and the real economic impacts, this housing 'echo' boom will likely fizzle fast. Buying now at inflated prices is super risky. We won't need quite so many properties as expected when our economy weakens, less people migrate, and many older people who own houses die. In fact, for those thinking of selling at inflated prices and who have held off selling as the prices madly rose, now would appear like the most attractive time to do so that they may get for quite a while.
Thanks for all your insights. First the epic bushfires, and now the coronavirus infections. What would be the third knock be? A new factor might be our federal govt willing to spend to stimulate the economy, which was rejected outright months ago. It is tiny, but it clearly signals the shift in the govt's stance. The govt has acknowledged that there most likely won't be a budget surplus. Thus they would have to increase spending to reap the benefits before the next election, to boost our economy before the election. And who wouldn't love a Santa Claus, even if he's our PM? Just as Rudd had the GFC as a good test, Morrison now has COVID-19.