Property prices are predicted to rise in late 2019
09 Jan 2019
If you’ve been searching for predictions on likely outcomes in 2019 – and you’ve been using mainstream media as your primary source – you’ll be massively confused and misinformed, because newspapers and other tabloid media like the ABC have featured only those who have forecast major and widespread price decline.
The vast majority of forecasters – the calm, sensible, rational ones like BIS, Domain, SQM Research, Propertyology and most of the major lenders – have predicted fairly optimistic outcomes in 2019 and 2020. But few of the major newspapers have published their forecasts.
A common theme among the credible forecasters is that Sydney and Melbourne will bottom out in the middle of 2019 and gradually return to moderate price growth, while the smaller capital cities will show growth this year ranging from moderate to strong.
Late 2019 will be the likely trough in house prices as easier monetary policy unfolds, there is a step up from previously frozen out first home buyers and the strength in demographic demand as fresh supply falters in line with the slippage in building approvals are all likely to put a floor under prices.
2% rise is predicted in the second half of 2019, after a small drop in early this year. Economist Stephen Koukoulas predicts very positive 2020 with additional 3% rise across Sydney, NSW.
In general, consumers will likely scale back their spending, rebuild savings and be generally cautious in their approach to spending in 2019.
*source Property Observer
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