What happens to house prices after a downturn? And consumer confidence creeping higher!

Hope you’ve had a great week!

Interesting analysis through from Property Investment Professionals of Australia (PIPA),.

PIPA chairman Peter Koulizos analysed data for seven consecutive years including the start of each recession or economic downturn from 1973 to the global financial crisis.

“In fact, looking back over the past nearly 50 years, house prices were higher five years after a recession or downturn each time,” Koulizos said.

“Some locations performed better than others, most likely due to local economic factors after each period.

“However, the research shows that talk of impending property ‘doom’ has never happened in recent history–and these recessions or downturns lasted multiple years rather than a few months.”

In more positive news though, the ANZ Roy Morgan Australian consumer confidence results for the month got updated and:

• Confidence gained for the eighth straight week and is up 42% from its low point in March when fears about the pandemic were at the most extreme

• 'Time to buy a major household item' strengthened further, up 2.5%

ANZ Head of Australian Economics, David Plank, commented: 

Confidence strengthened further last week, albeit modestly. 

While still below average, sentiment has recovered strongly from its March low and is now only around 15% below its level at the end of February. 

Government measures and signs that the job market is stabilising seem to be playing a key part in the recovery of the index despite recent concerns over trade with China and weak retail sales. 

Further good positives for our economy and property markets!

Have a great weekend, stay safe, and if you have any queries in regards to the effect of the Coronavirus on our property markets, please contact enquiries@propertyclub.com.au. 

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Property Club is at the forefront of the best properties in the best areas - make contact with your Property Mentor or hit enquiries@propertyclub.com.au for further information on the great options available for Club members!

Troy Gunasekera

National Manager