Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
Receive the latest mybusiness newssign up
End in sight for property price falls: CoreLogic

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

End in sight for property price falls: CoreLogic

Houses in Melbourne

Property analytics firm CoreLogic believes the pain for home owners in Australia’s biggest property markets will be over within the space of 12 months.

“Short-run forecast suggests that the Sydney marketplace will continue along its trajectory of decline but still seeing a continual moderation in the rate of decline before bottoming out around about the first half of 2020,” the group’s head of research, Tim Lawless, said.

This is in line with predictions from accounting giant KPMG, which forecast in January this year that house prices in both Sydney and Melbourne would plateau by year’s end.

Advertisement
Advertisement

“To sum up, conditions are probably going to remain weak for some time; we are probably through the worst of it. Credit availability will be the key factor to be watching in this marketplace, that’s what has really inspired this downturn,” Mr Lawless said.

However, he cautioned that his forecast does not factor in potential changes in the economy that may boost or further detract from buyer interest.

“This is simply a momentum-based forecast, so it does not factor in macro-economic conditions, lower interest rate, change of political policies around taxation, so anything could happen,” Mr Lawless said.

It is believed that first home buyers that were previously unable to afford a house will drive any market shift through the purchase of apartments in Sydney and Melbourne.

SPONSORED CONTENT

 

“Low mortgage rates, high population growth and improving affordability should help to offset the impact on activity from tight credit,” Mr Lawless said.

Despite the continuing price falls, properties in Sydney and Melbourne are still 9.1 and 8.2 times the average household income, respectively.

This email address is being protected from spambots. You need JavaScript enabled to view it.

Adam Zuchetti

Adam Zuchetti

Adam Zuchetti is the editor of My Business, and has steered the editorial direction of the publication since the beginning of 2016. Before joining My Business, he worked on fellow Momentum Media titles The Adviser and Mortgage Business.

The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Adam has written across both consumer and business titles, including for News Corp Australia and Domain.

You can email Adam at This email address is being protected from spambots. You need JavaScript enabled to view it.

comments
FROM THE WEB
End in sight for property price falls: CoreLogic
mybusiness logo