Falls in house prices across the country are going to accelerate this year, rating's agency Moody's has forecast, with parts of Sydney and Melbourne likely to face drops of more than 15 per cent over the next 12 months.
In January, Moody's forecast Sydney house prices would drop by 3.3 per cent. It now believes the drop will be 9.3 per cent.Melbourne's drop-off is even more acute, with the agency now predicting an 11.4 per cent fall in the city's house prices. In January, it was tipping a 6 per cent decline.Sydney's inner south-west is tipped to endure falls of 14.4 per cent while in Ryde prices are forecast to drop by a city-worst 15.8 per cent. That would be after falls last year of 8.
Melbourne's market is facing a bigger downturn. The city's inner east is tipped to see falls of 16.3 per cent after a five per cent drop last year while across the inner south prices are forecast to edge down by 14.2 per cent after a 4.4 per cent decline in 2018.The "best" performed parts of Melbourne are tipped to be the city's north-east and west with falls of 8.5 per cent.
"The underlying trend in consumption has been weak, as consumers have dipped into savings absent decent wage growth over the past few years," it said.
swrighteconomy Moody's, the firm that had a 'A' Rating for Lehman Brothers until ONE DAY before it imploded. Yeah I'm going with their predictions.....
swrighteconomy Good news for young folks! Good news for home owning boomer parents who want the kids to move out and on with their adult lives.
swrighteconomy Nice