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Mortgage Choice chief executive Michael Russell remains confident that record-low rates will continue to fuel Australian real estate prices.
Speaking at the release of the group’s December settlement results, Mr Russell said the property market should continue to stay “relatively hot” as more people look to take advantage of the low-rate environment.
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“There is no denying the property market has been relatively hot for the last two years and, according to recent data released by the Australian Bureau of Statistics, there is still a lot of heat in the market,” Mr Russell said.
“The latest housing finance data from the ABS found more than 50,000 home loans were written in October, which is incredibly high by historical standards.
“Our brokers continue to take advantage of the spike in home loan demand and are using this time as an opportunity to grow their business and their bottom lines," he said.
However, Mr Russell’s forecast is at odds with the latest NAB Quarterly Australian Residential Property Survey, in which expectations for house price increases over the next year eased back considerably with fears of falls in Perth.
“Our assessment of the market remains that house price growth will continue to moderate because of rising unemployment, sluggish household income growth, affordability concerns, cost of living pressures and high levels of household debt,” chief economist Alan Oster said.
[Related: Stop ‘crying wolf’ over Sydney prices, says market expert]
