Saturday, 30 October 2021

House prices exceed Treasury’s 2025 forecast


“Treasury's forecasts for house prices in 2025 have been surpassed already, raising questions about the advice the Government is getting,” says ACT Deputy Leader and Housing spokesperson Brooke van Velden.

“When Treasury’s house price projections are exceeded four years ahead of schedule, something is very wrong. 

“This is hugely concerning, not just to first-home buyers, but to anyone concerned about the ongoing escalation in house prices and the pressure it puts on the market. 

“It raises the question about whether the Minister remains confident in the model Treasury is using to make these predictions on house prices, because they influence how people are responding to the housing market.

“In its last fiscal forecast in May, the Treasury projected that after reaching a peak increase of 17.3 per cent this year, house prices would rise by 0.9 per cent next year, by 2.1 per cent in 2023 and 2024, and then by 2.5 per cent in 2025.

“According to CoreLogic's latest house price figures, the national average house price was $950,229 in September. In the Treasury Fiscal Forecast in May it said: 2025 projected prices: $933,322. 

“The Minister should be asking serious question about the advice Government is getting. 

“ACT has proposed real solutions to the housing crisis. We would remove barriers for build to rent and share GST with local councils to help encourage building and infrastructure." 

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