Forecasts of falling dwelling prices are usually highly inaccurate and cause unnecessary fear among consumers, according to analyst Michael Russell.

Russell, the managing director of Money Quest & Buyers Choice, says housing forecasts have been inaccurate for decades.

He says rising interest rates are generally accompanied with an unreasonably negative outlook on dwelling prices – and this causes buyers to lose confidence.

Russell says the ‘doomsdayers’ are creating unnecessary stress and anxiety for borrowers and homebuyers with their pessimistic predictions.

“Dwelling price forecasters are always wrong – yes that’s right, always!” he says.

Two years ago, all four major banks predicted an 11% drop in dwelling prices between June 2020 and June 2021 – but, instead, prices rose by 21.5%.

Russell says today’s key economic indicators are better than those Australia experienced during the GFC and at the height of the pandemic.

More recently, while commentators were predicting big drops in prices between May and July 2022, Australian dwelling prices fell only 1.3%.