2019 and 2020 - What's on the cards?
2018 is clearly being shaped by availability of credit.
Home values fell more in Sydney than any other city over the year to August according to CoreLogic figures this month.
Current slowdown in market is clearly caused by tighter credit conditions which followed on from macro prudentials imposed by the banking regulators.
Not to mention funding costs that have gone up too.
What does 2019 looks like?
House prices will continue to decline next year too.
2019 is clearly going to be impacted by cost of credit. Banks have already started to impose out-of-cycle rate rises.
It looks more and more likely RBA will increase rates in second-half of the next year and it could be as many as two rate hikes. If that happens it's safe to say it will put further pressure on the housing market and prices will head towards south.
This of-course will have some impact on the construction sector too. Apartment pre-sales are getting harder and harder.
The decline in investment is likely to gather pace through 2019 and 2020, shedding under 10% each year...
Jazz Sidana
FinanceBoutique
Home values fell more in Sydney than any other city over the year to August according to CoreLogic figures this month.
Current slowdown in market is clearly caused by tighter credit conditions which followed on from macro prudentials imposed by the banking regulators.
Not to mention funding costs that have gone up too.
What does 2019 looks like?
House prices will continue to decline next year too.
2019 is clearly going to be impacted by cost of credit. Banks have already started to impose out-of-cycle rate rises.
It looks more and more likely RBA will increase rates in second-half of the next year and it could be as many as two rate hikes. If that happens it's safe to say it will put further pressure on the housing market and prices will head towards south.
This of-course will have some impact on the construction sector too. Apartment pre-sales are getting harder and harder.
The decline in investment is likely to gather pace through 2019 and 2020, shedding under 10% each year...
Jazz Sidana
FinanceBoutique
Comments
Post a Comment