Property news roundup: New Year 2019
It's the first week of the year and the predictions are coming in thick and fast! We've got some great reading lined up this week, too.
Firstly, the question on everyone's lips - how much will prices fall this year? You can explore this answer in this article from Yahoo. The link also contains some good graphs to peruse.
The article cites recent research done by Moody’s Analytics:
‘According to analysis by Moody’s Analytics, the gloomy outlook doesn’t look set to get much brighter – but there are pockets of opportunities in some cities.'
For Sydney in particular, despite a further 3.3 per cent drop being forecast, there is some optimism.
“By 2020, the correction is forecast to have largely passed, but house value growth will be far from the lofty gains of recent years. Housing values are forecast to rise modestly in 2020.”
Another article explores the affect of lending and it’s impact on investors. A noteable quote from this link:
“We have to remember the banks are in the business of lending money. They want to lend money because it's how they make money,”
And what about the economic fall out from the current property market situation? You can read more in this article from the SMH.
Meanwhile on news.com.au, they are exploring the
Speaking to REA’s Chief Economist,Nerida Conisbee, on the lending restrictions being the main cause of the downturn, here is what she had to say:
'“tightening of credit wasn’t the only factor, but instead added to multiple blows that took confidence out of the market… When prices started to fall the (media) coverage started to cause fear in the market that things were tough and were going to get tougher,” she said.”
“We know that any increase in financing cost does have an impact on sentiment, but it wasn’t just one thing.”
Over on AFR, they’re talking about how Brisbane will outperform Sydney and Melbourne this year.
We’re feeling pretty positive about Brisbane too, so if you are interested in a Brisbane investment, have a look at our projects page and don’t hesitate to get in touch.
Have a great week!