Will real estate prices fall in Sydney?
Real estate experts and research evaluated the future of the Sydney real estate market. It has been investigated how much housing prices may change throughout the year. So, how is the real estate market of Sydney 2019? What to expect from the Sydney real estate market 2019? Will real estate prices fall in Sydney?
According to a published report, housing prices will fall down in 2019. Dwelling values were tipped to fall 3.3 per cent for the year, coming on the back of a nearly 6 per cent decline over 2018, according to the forecasts from Moody’s Analytics and CoreLogic.The declines would not be evenly spread across housing categories, with detached house prices expected to record higher falls.
Moody’s Analytics economist Katrina Ell said detached house prices would drop more because they had risen faster over recent years.“Peaks and troughs in previous cycles have been steeper for houses, which in part reflects the difficulty in unlocking new supply; conversely, apartment supply tends to outstrip house supply in Sydney,” she said.
CoreLogic’s latest Hedonic Home Value Index announced housing prices will fall next December.
According to Moody’s housing values will increase by 1.2 percent in the western and domestic regions of the city. “Given that most of household wealth is in the relatively illiquid asset of housing, there would be greater systematic implications if debt repayment difficulties suddenly become a broader concern,” Ms Ell said.
“If unemployment were to rise, it would force many households to sell at once.”
CoreLogic analyst Cameron Kusher said Sydney’s housing slump was largely the result of tight lending policies from banks. Negative sentiment was also playing a part, Mr Kusher said. “Buyers can see there is a downturn, so there is no impetus to jump into the market,” he said. “There could be a feeling from buyers that if they wait prices will be even lower.
Sevdenur Demir / realestatecoulisse.com
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