PHOTO: Talking about real estate and investing in real estate are both Australian pastimes. Source: istock

There’s ongoing debate on whether house prices will crash or boom. These three warning signs point to a bleak future ahead.

At barbecues across our great Southern land, there is one topic of conversation that defines Australian life: housing prices.

Frankly it’s not surprising. In decades passed, simply buying a property in the right area and holding onto it for long enough could quite literally net an owner more in capital gains per year than they earned from working.

On the other side of the coin, first home buyers have increasingly been priced out of the market, with many hoping for a price correction to more reasonable levels.

As the pandemic and its aftermath continue to unfold across the globe, economists and property market observers are wildly divided on what will happen to house prices in coming years.

Recently, some economists have become far more positive on the direction of property prices. Forecasting teams at both Westpac and the Commonwealth Bank (CBA) are now predicting strong price growth in the latter half of 2021, after relatively limited price falls of 5 to 6% across the nations capitals.