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House prices will decline dramatically in 2019, according to Moody's Moalytics



House prices are expected to fall sharply in Sydney and Melbourne over the year, according to a new report.

The worse Sydney is to grow the values ​​by 9.3 per cent this year. Sector values ​​are much slower than houses, with a decrease of 5.9 per cent in 2019, and then a change in 2020.

The latest report comes after the Australian Bureau of Statistics published last year showing house prices have fallen at a faster rate than in the global financial crisis.

Building values ​​have now fallen by 13.9 per cent in Sydney since they passed in July 2017.

In Melbourne, house prices are expected to decrease by five per cent this year and a further 1.4% in 2020.

Across the country as a whole, Moody expects that house prices in cities will fall by 7.7 this year, while in accommodation, a reduction of 4.3 per cent less. according to the group's report.

The greatest decrease in house prices in the Ryde area, in the north-west of the town, is expected to decrease by 15.8 per cent this year.

Building shoppers in Ryde are already paying the sames prices they were five years ago as retailers continue to charge prices to counter market decline.

Central unit prices have dropped from over $ 720,000 two years ago to the mark of $ 650,000- $ 670,000 on North Ryde and Meadowbank nearby.

The good news for Perth is not just for either, with house values ​​declining to 7.6 per cent in 2019.

Declines in the building may be made worse by changes in negligible gear and further tightening of borrowing constraints.

Better news in Brisbane, with the poorest columns for the capital of Queensland, says in the report. House values ​​expect to see a correction in 2019 and strength in East Brisbane.

Values ​​in the Brisbane housing market are being reclaimed at 0.9 this year.

The Adelaide housing market will have been stable, with house values ​​expected to rise by 1 per cent in 2019 after benefit of 1.9 per cent in 2018.

In Darwin, there is a fall of 13.1 per cent in 2019.

Hobart is expected to stop next year with a small reduction in house prices over 2020 and 2021.

The Labor plan could eliminate the negative set of existing buildings to new investors to stop reviving close to market.

“If this policy has been implemented within the first year of Opposition officials, there would have been occasions of reduction in the investment sector in the worse market,” t the auditors.

“Already the involvement of reduced museum investment would be that national home values ​​would reach a slightly deeper level and that this would slow down, particularly in markets where there is a greater partner base. compared to the national average, including Sydney, Melbourne and Brisbane.

Moody expects the Savings Bank to maintain the official rate of money at 1.5 per cent to the middle of 2021.

Building prices have remained around 20 per cent higher than at the beginning of growth in 2013.

The figures given last month's ABS showing house prices in capital cities are falling by 2.4 per cent in the December quarter to record a total fall of 5.1 per cent in 2018.

This compares with the annual fall of 4.6 per cent in 2009 during the GFC.

Sydney's prices fell by 3.7 per cent to three months for December for the sixth quarter in a row and were down 7.8 per cent for the year, according to ABS.

Melbourne prices were down 2.4 per cent for the quarter and 6.4% for the year.

The chief economist of Bruce Hockman said the falls in two of the country's main property markets were based on a number of factors.

“While property prices are falling in most major cities, there is a more significant impact in the provision of credit and less demand from owners and owner-occupiers of property markets. more in Sydney and Melbourne, ”he said.


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