Did you happen to watch 60 Minutes Australia last Sunday (18th August 2024)? The episode focused on the potential for a significant property market crash in the U.S. and Australia.
It featured Harry Dent, a financial analyst well-known for his bearish predictions on the property market globally.
Dent was previously hailed for forecasting the 2008 financial crisis. Except he was early in his timing – about 2 years early.
He made his warnings in 2005, prior to the most bullish years of the cycle playing out.
I’m not sure you could say that was an accurate forecast – but still… It’s bought Harry some credibility when it came to forecasting real estate crashes.
In the recent 60 Minutes episode, Dent urges Australian investors to exit the real estate market before values plummet starting in the U.S. and rippling outwards. Beginning in the second half of 2024.
He warned that high household debt, rising interest rates, broader economic challenges are driving markets into a potential 40/50% decline in values through 2025.
It’s quite a call.
Australia hasn’t witnessed anything close to a 40% decline (*crash* rather) in Australian median values since the Great Depression in the 1930s.
It reminds me of Chris Joye, who laid out one of the most extreme bear cases for Australian property prices to plummet in 2022…