Ewan’s Hot Take: on the housing market and views on the supply shortage

The real estate market is showing solid transactions in April, but prices are softening, leading to a drop in buyer numbers. The rental market is also strong but starting to soften at the high end, with some landlords being too aggressive with rents. However, rent increases across the board are attractive to investors. The market has not seen a significant reduction in property prices even during financial disasters such as the GFC and COVID-19 pandemic because people have been able to hold onto their properties. Housing affordability, supply issues, and the bank of mom and dad are expected to continue to play a role in the market. Supply is expected to take years to catch up, as planning and development take time. Despite this, values are expected to maintain, and rents are still expected to be strong.