Yahoo Finance House prices to fall sharply in 2019: Moody's Analytics
House values are to continue to lead the property market downturn in 2019, according to Moody’s Analytics, with Sydney and Melbourne forecast to lead the declines.
The property downturn could be made worse by changes to negative gearing and further tightening in lending restrictions, according to the ratings agency report released today.
Across the eight capital cities, house values are set to decline 7.7% in 2019, a sharper correction than apartments which are forecast to see a 4.3% hit.
Sydney houses will be hit hard with values forecast to fall a further 9.3% in 2019, before a slow recovery in 2020. This was a sharp revision down from the agency’s January prediction of 3.3%. Apartments will decline at a slower pace of 5.9%, according to the ratings agency.
For Melbourne house values are forecast to decline sharply in 2019, following a modest correction in
2018. The majority of the decline and slowdown will be concentrated in the Inner Melbourne
regions. The majority of the decline and slowdown will be concentrated in the Inner Melbourne
regions
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The worst is over for Brisbane, according to Moody’s, with house values to see a correction in 2019.
There will be strength in East Brisbane, offset by declines elsewhere.
There’s also good news for the Brisbane apartment market, Moody’s forecast. Values are tipped to recover 0.9% in 2019.
It’s not such good news for Perth, despite commodity prices stabilising house values are like to decline 7.6% in 2019.
Adelaide’s housing market will continue its stable run, with house values forecast to rise 1% in 2019 after a 1.9% gain in 2018.
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