Plummeting property prices could stabilise as early as next year before moving into a moderate growth phase, new research from Domain Group has suggested. Domain’s latest Property Price Forecast report has modeled the likely scenario for capital city prices over the next two years, factoring in population growth, interest rates, bank lending, unemployment rates and market sentiment. They have 2% growth forecasted for Hobart in 2019 and 2% again for 2020. Thursday, Urban Developer SQM puts it 5% for 2019. Tuesday, Your Money Corelogic forecasts negative growth (see below).
A revised ANZ forecast has warned that housing prices could fall as much as 20 per cent across Sydney and Melbourne and advised “stability isn’t likely until early 2020”. ANZ is the latest to weigh in, revising its outlook downwards amid weakening economic signals. A foreign buyer exodus coupled with oversupply, tighter lending conditions, and a potential incoming Labour government wiping out the negative gearing incentive for investors capital gains tax breaks, have all added to decaying sentiment and corrosive market conditions. Friday, Urban Developer Domain is forecasting 0 and -1% growth in 2019 and moderate growth in 2020. Wednesday, Domain
The affordability of rental properties in Hobart and surrounds has nosedived to its lowest point in six years, the latest figures from the Rental Affordability Index found.The disparity between soaring rent prices and stagnating wages, has caused affordability to slip by a further 12 index points in the past two years. Hobart scored 101 on the rental affordability index (RAI) in the June quarter of this year, meaning most households are devoting at least 30 percent of their income to keeping a rented roof over their head. – Thursday, ABC
“Regional housing markets of Australia have returned a diverse performance with Regional Tasmania standing out as the only broad region nationally where dwelling values are recording double digit growth, up 11.4%. Both Hobart and regional Tasmania continue to record strong housing market conditions, driven by robust housing demand coupled with a shortage of supply.” – Corelogic
Results for Tasmania for the week 19th November to 25th November 2018
Clearance Rate: 50% · Reported: 2 · Sold: 1 · Not Sold: 1
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