by Sanjeev Sah | Aug 08, 2023 | Market Updates

NAB is the latest major bank to eat humble pie after the property market’s ‘surprising resilience’ proved their initial doom and gloom forecasts wrong.  

Due to the demand/supply imbalance offsetting the drag from higher interest rates, NAB bow expects capital city property prices to end this calendar year an average of 4.7% up, not down 4% (as previously forecast). 

The forecast is based on the expectation that the RBA will lift rates to 4.6% by September, before keeping them on hold until 2024. 

If interest rates are subsequently cut – as the bank predicts – this should then support price growth of 5% (see image).