Invest
Predictions for when the housing market will bottom out
The fall in the property market across Sydney and Melbourne eased further in April, giving more of an indication that the housing market will be in recovery in the medium term rather than the long term.
Predictions for when the housing market will bottom out
The fall in the property market across Sydney and Melbourne eased further in April, giving more of an indication that the housing market will be in recovery in the medium term rather than the long term.
CoreLogic head of research Tim Lawless believes the pain for home owners in Australia’s biggest property markets will be over within the space of 12 months.
“Short-run forecast suggests that the Sydney marketplace will continue along its trajectory of decline but still seeing a continual moderation in the rate of decline before bottoming out around about the first half of 2020,” said Mr Lawless.
This is in line with predictions from accounting giant KPMG.
“To sum up, conditions are probably going to remain weak for some time, we are probably through the worst of it. availability will be the key factor to be watching in this marketplace, that’s what has really inspired this downturn” said Mr Lawless.
“This is simply a momentum-based forecast so it does not factor in macroeconomic conditions, lower interest rate, change of political policies around taxation, so anything could happen,” Mr Lawless added.
Young Aussies step in
It is believed that first home buyers who were previously unable to afford a house will drive the recovery through the purchasing of apartments in Sydney and Melbourne.
“Low mortgage rates, high population growth and improving affordability should help to offset the impact on activity from tight credit,” said Mr Lawless.
Despite the falling property market, properties in Sydney and Melbourne are still 9.1 and 8.2 times the average household income, respectively.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Property
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released ...Read more
Property
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said. ...Read more
Property
Why are expats returning to property market?
Expats are returning to Australia in droves, eager to put their money into safe investments. ...Read more
Property
Stamp duty to be phased out under new proposal
The NSW government has stated that it could phase out inefficient taxes such as stamp duty as it looks to recover from the COVID-19 pandemic. ...Read more
Property
Melbourne rents continue to decline
While most capital cities recorded increases in asking rents, Melbourne continued to see declines in both houses and units, according to latest data from SQM Research. ...Read more
Property
Why investors should focus on the next 1-5 years
Investors are being urged to look beyond their own backyards into opportunities over the next one to five years. ...Read more
Property
Distressed sales fall to pre-pandemic levels
Urgent property sales have dropped back to pre-pandemic levels in most cities – proof of Australia’s continuous recovery from the effects of the COVID-19 outbreak. ...Read more
Property
Top tips for managing your own property portfolio
Managing investment properties can feel very much like rolling a dice, you can never be quite sure what you’re going to encounter and, in most cases, you possess minimal control over what happens ne...Read more
Property
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released ...Read more
Property
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said. ...Read more
Property
Why are expats returning to property market?
Expats are returning to Australia in droves, eager to put their money into safe investments. ...Read more
Property
Stamp duty to be phased out under new proposal
The NSW government has stated that it could phase out inefficient taxes such as stamp duty as it looks to recover from the COVID-19 pandemic. ...Read more
Property
Melbourne rents continue to decline
While most capital cities recorded increases in asking rents, Melbourne continued to see declines in both houses and units, according to latest data from SQM Research. ...Read more
Property
Why investors should focus on the next 1-5 years
Investors are being urged to look beyond their own backyards into opportunities over the next one to five years. ...Read more
Property
Distressed sales fall to pre-pandemic levels
Urgent property sales have dropped back to pre-pandemic levels in most cities – proof of Australia’s continuous recovery from the effects of the COVID-19 outbreak. ...Read more
Property
Top tips for managing your own property portfolio
Managing investment properties can feel very much like rolling a dice, you can never be quite sure what you’re going to encounter and, in most cases, you possess minimal control over what happens ne...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
