Australian property prices have suffered a pummelling over the past 12 months, with prices dropping at a fast rate than during the global financial crisis around the country.
And it’s not hit rock bottom yet.
In fact, experts believe that property prices could fall another 8 per cent by the end of 2019, with units in Sydney and Melbourne expected to be worst hit, according to a recent RBA cash rate survey by Finder.
- Related article: Is your credit score stopping you from buying your dream home?
- Related article: Property market meltdown could ruin small businesses, treasurer warns
- Related article: 6 most expensive homes in the world revealed
The median for house price for Sydney is $930,000, but with a forecasted 6.21 per cent decline prices could plummet nearly $60k to a new median of $872,242.
Melbourne house prices are tipped to fall by almost $50,000 by 2020.
Expected price changes for houses and units around the country
Even lower prices means could be just what some first-time buyers need to get on the property ladder, Finder’s insights manager Graham Cooke said.
With another 6-8 per cent drop expected for Sydney this year, it would be harder for existing homeowners to build up equity, however it also makes Sydney an attractive market for first-home buyers with a deposit saved, he explained.
So Cooke said that those thinking of getting into the property market over the next few years may be wise to hold out until prices have dropped further.
“Right now, there’s no need to jump on the first property you like. Use this time to save for your upfront costs,” he said.
“Look for value before you plunk down your deposit. Buying at the right time could potentially save you tens of thousands.”
Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, property and tech news.