PHOTO: Property market correction
The latest CoreLogic home value data shows the national housing market moving out of its correction, led by Sydney and Melbourne, according to Moody’s Analytics.
The national index for home values has fallen for almost two years but now house values have begung to rise starting in the September quarter.
National house values are on track to fall by 7% in 2019, before rising by 5.4% in 2020. Apartment values are forecast to fall by 3.8% in 2019, before rising by 5.1% in 2020.
The RBA has reduced the cash rate by 75 basis points so far this year to 0.75% and a further 25-basis point reduction is expected for early 2020, according to Moody’s Analytics.
Katrina Ell, Economist at Moody’s Analytics said that for 2019 and 2020 Moody’s has individual City and state forecasts, “drilling into the details, house values across Sydney are on track to fall by 8.4% in 2019, before a forecast 7.7% expansion in 2020. Apartment values are set to decline by 5.9% in 2019, followed by a forecast 7.9% expansion in 2020.”
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