Livewire Exclusive

Australian residential property prices gained 0.7% through July, with the year-to-date gain now at 6.2%. Speaking at Livewire Live recently, Steve Johnson of Forager Funds said that it was, however, perfectly feasible that house prices could fall by 25%, and listed three potential catalysts.

Responding to a question posed by an audience member during the Q&A session, Johnson said:

“People’s capacity to pay is what’s driving prices. We’ve had interest rates come down so far, that people can pay 2-3 times the price for the house with the same servicing costs that they were paying ten years ago”.

As well as listing several potential triggers of a pullback, he outlined the implications to the wider economy, and to investors, of the significant mortgage burden carried by Australians.

Access all of the panel discussions and stock presentations from Livewire Live 2017.

Livewire has built a new premium online portal that gives existing Livewire Members access to the recent Livewire Live 2017 investor forum. You can see the event agenda here and follow these steps if you'd like to get access.

The cost is $49 and as an existing Livewire reader, you're entitled to a 25% discount. Details below...

  1. Head to the new Livewire Digital Pass website
  2. Create an account and password
  3. Get your 25% member discount by using the discount code: LWMEMBER


Please sign in to comment on this wire.