Sydney house values to grow 0.6% in 2019: CoreLogic-Moody’s Analytics Australian Home Value Index Forecast
The Australian housing market will continue its downward correction on a national basis through 2018 and most of 2019, according to the CoreLogic-Moody’s Analytics Australian Home Value Index Forecast.
They see trends that will show a degree of diversity at the city and state levels.
Sydney values, which Moodys predict will fall 5.1 percent this year, will only rise 0.6 percent in 2019.
National values are forecast to fall by 1.6% year on year in 2018, following a 9.5% gain in 2017.
Click here to enlarge.
In the rest of New South Wales outside of Sydney, demand has increased as areas show better affordability.
The Central Coast, which has benefitted from Sydney's soaring house prices, is forecast to escape the correction.
Moody's sees a 3.6 percent rise in 2018 and eight percent in 2019.
Click here to enlarge.
The growth in house values in Melbourne is forecast to decelerate sharply - after a 12.5% rise in 2017 - to 0.3% in 2018, on the back of declines in inner Melbourne areas.
Recovery is elusive in the near-term, with Melbourne house values forecast to fall 0.2% in 2019.
House values across Brisbane are forecast to see a mild 1.5% gain in 2018, with strength in West Brisbane and Inner Brisbane offsetting declines in South Brisbane.
Despite stabilising commodity prices, house values in Perth – whose economy is very much tied to the mining industry -- will likely decline by 1.9% in 2018, followed by a further 0.5% retreat in 2019. However, a slow recovery is likely in 2020 as the local economy improves thanks to population growth.
Meanwhile Adelaide’s housing market will have a stable run, with values forecast to rise 1.5% in 2018, after a 4.9% gain in 2017. Hobart’s housing market is likely at the end of its bull run.
While values are forecast to rise 11.3% in 2018, they will fall 0.3% in 2019.
