Climbing unemployment poses only a limited threat to the value of home prices, which will continue to rise this year, according to an industry report released today.
ANZ Bank said the possibility of increased joblessness “looms as a cloud over the horizon” but “is likely to present as a second-order influence on housing market outcomes.”
“Policy stimulus and tight fundamentals, due to record high population growth and weak building levels, continue to exacerbate the shortage of housing – this has supported the market until now and will continue to do so,” ANZ said.
In previous months, economic analysis focused on the link between higher unemployment and falling home prices, on the expectation cash-strapped owners would have to accept lower prices on their houses.
“We expect dwelling prices to edge higher for much of the remainder of 2009 with upside risk presenting from intensification of strong fundamentals, a shift in price expectations and a restoration in market confidence.”
>>> Home prices to ‘edge up’ despite job losses
