Real estate guru John McGrath’s market predictions for Australia post-federal election 2022

Now is the time for savvy homebuyers to snap up a relative bargain on a property they would not have been able to afford a year ago, according to real estate guru John McGrath.

Now is the time for savvy homebuyers to snap up a relative bargain on a property they would not have been able to afford a year ago, according to real estate guru John McGrath.

As the real estate market “takes a breather” on the back of the federal election and record price growth last year, Mr McGrath believes we are already halfway through a correction and prices will fall only “a few more per cent” in the next 12 months.

“If you buy this year, you can be confident of getting a five to 10 per cent discount on last year,” Mr McGrath said.

Speaking exclusively to News Corp ahead of the sold-out Australasian Real Estate Conference (AREC), starting Sunday on the Gold Coast, Mr McGrath was optimistic about the future for real estate in Australia in the wake of the election, despite recent doom and gloom headlines.

“I don’t think anyone is going to be badly damaged (by the current market headwinds),” Mr McGrath said.

Real estate influencer John McGrath speaks at the Australasian Real Estate Conference on May 30, 2021. Picture: Social Focus

“I think Queensland will lead (the recovery), but all of the east coast and Central Australia will have a soft landing off the back of this correction.

“We think the market is probably down five to eight per cent from its peak in October and with, maybe, a few more per cent to go through the next six to 12 months, but we do think we’ve seen at least 50 per cent of the correction.

“You’ve got to remember that that five per cent decline is coming off a 35 to 40 per cent increase in the last few years. Most Aussies are still well ahead in terms of their investments and mortgages.”

Mr McGrath, who last month returned as CEO to the eponymous agency he launched three decades ago and floated on the stock exchange in 2015, said he expected further interest rate rises of between 1.25 and 1.75 per cent over the next 18 months.

That would result in mortgage holders paying an average interest rate of 3.5 to 4 per cent.

“The average over the long-term is a 7 per cent payment on mortgages, so while we recognise any increase in mortgage payments will impact affordability, we still think in the long term we’ll settle at rates well below historical averages.”

Now is the time for savvy homebuyers to snap up a relative bargain on a property they would not have been able to afford a year ago, according to real estate guru John McGrath.

With the election now out of the way, Mr McGrath is expecting “more optimism”.

“I think from a real estate perspective it will be positive,” he said.

“There was a clear mandate in terms of people liking what the Labor Government was saying.

“Generally, we find after federal elections there is a positive feeling in the economic world.”

More than 3500 of the country’s top real estate agents will flood the Gold Coast this weekend to attend the conference Mr McGrath founded 24 years ago.

The star keynote speaker at this year’s event will be Oscar winning actor Matthew McConaughey.

“In addition to his celebrity status, (McConaughey) has a great story behind him about the challenges of getting into acting early on and how difficult it was for him to get any momentum in the industry,” Mr McGrath said.

“I think the process he’s undertaken and the way he’s thought about his business is very relevant to real estate agents.”

Other keynote speakers include marketing guru Seth Godlin and international best-selling author and personal development coach, Mel Robbins.

“This is the best line-up of speakers we’ve had in a quarter of a century at AREC — both in terms of keynote speakers and local agents in Australasia,” he said.

“I think right now, a lot of agents have realised the industry’s changing significantly and if they’re not abreast of the technology and strategies adopted by top agents, they’ll start falling behind.”

The real estate empowerment event, which will run for two days at the Gold Coast Convention and Exhibition Centre from May 29 to 30.

Originally published as Real estate guru John McGrath’s market predictions for Australia post-federal election 2022