SQM's Louis Christopher affirms Sydney prices to fall 6 percent to 9 percent during 2019
SQM's Louis Christopher has forecast dwelling prices across Sydney are likely to fall 6 percent to 9 percent during 2019.
It will happen for the most part in the first half of the year, he suggests.
"There is a chance we may well see a bottoming out but that is dependent on a number of events which have not yet unfolded, for example we may see the RBA intervene in the market," he told a Harris Partners podcast.
"It's looking increasingly likely that this will be a 15%-20% peak to trough decline."
Christopher described the inner west as a market "correctly fairly fiercely" because the market was overvalued.
"I think we will still see some fairly rapid falls," he said.
Christopher noted the ongoing crosschecking of loan applicants incomes and expenses.
"That will result in a number of potential buyers having less borrowing power.
"I fear there may be a second credit crunch playing out in 2019.
"If the RBA come to the view that these price drops could lead to an economic recession, it is likely they will cut rates to put a floor in the market place."
Louis Christopher is the managing director at SQM Research.
