Market likely to correct, not crash, in 2019 says realestate.com.au

PHOTO: REA Group/realestate.com.au chief economist Nerida Conisbee.

realestate.com.au launched its quarterly Property Outlook – January 2019 report (October to December 2018), analysing more than 80 million property searches.

While the worst may not be quite over for Sydney and Melbourne, conditions remain highly variable across the country, year-on-year declines in Melbourne (-1.48%) and Sydney (-5.93%) look to be far less severe than many are reporting.

Hobart, Canberra, Adelaide and Brisbane (in order of price growth) recorded price increases in 2018.

The report notes that two major events which could dramatically change the direction of the market are the Federal Election expected in May, along with the outcome of the Financial Services Royal Commission. The report states that early signs are suggesting restrictions on home loans will not be a big focus, pointing toward APRA removing the cap on interest-only loans toward the end of 2018.