NAB forecast flat property prices in Sydney and Melbourne
The NAB have forecast an upcoming stabilization in the housing market, but suggest a flat market in the near future.
"NAB's view is that prices will stabilise in the near term, and remain broadly flat over the next year or so," the big four bank advised.
They had previously expected further falls of around five percent in Sydney and Melbourne.
NAB expect both Sydney and Melbourne to see little change in 2020. They forecast total house price declines of 4.4% over 2019 in Sydney and 5.1% in Melbourne.
Peak to trough losses in Sydney looks to be around 15% and Melbourne around 11%.
Hobart is forecast to be the strongest performer in 2019 and 2020.
NAB forecast it will be the only capital city with house price growth next year.
The NAB Residential Property Survey for Q2 2019 saw an increase in market sentiment following the federal election.
The seven point jump took the NAB Residential Property Index to a 12 month high, although it still sits in the negative.
Future expectations improved sharply.
"The average survey expectation now is for basically flat national house prices in the next 12 months, reversing expectations for further declines in the last survey," NAB suggested.
NAB are the second big four bank to amend their house price forecast following a slowing in house price declines.
ANZ amended their forecast, however suggested, after the imminent bottoming of the market, there will be growth in the bank end of 2019 and prices will jump around three percent over 2020.
