The Doom Sayers are out in force and the media is beating up these negative stories yet again.  But there are some very good reasons as to why their predictions are unlikely to come true!

1. There is a shortage of good properties for sale and virtually no properties to rent.
2. International immigration is picking up and this will increase the demand for housing.
3. There is little new construction in the pipeline – we’re just not building enough dwellings and increasing construction costs at a time of a shortage of labour means the end value of new projects will need to be up to 20% higher to make projects financially viable for developers.
4. Our economy is still growing strongly and is very resilient.
5. Unemployment is at historically low levels meaning anyone who wants a job can get a job (so they’ll be able to pay the mortgage repayments.)
6. Wages are starting to grow.
7. Household balance sheets are strong – we have a ‘natural buffer’ with $250- $260 billion in aggregate savings nationally much of it in offset accounts.
8. Many borrowers are ahead in their mortgage payments – Matt Comyn, chief executive of Commonwealth Bank recently said that three-quarters of their loans are approximately two years ahead on repayments.
9. We have a strong banking system that has been strict in its lending criteria, meaning there are very few non-performing loans.
10. There are still Government incentives to encourage first-home buyers into the market.

So, whilst the tales of impending doom make great click bait, rational thought will be a better guide for your decisions.