2019 property market roller coaster

2019 property market roller coaster

Tanya Sale

At the beginning of 2019 with house prices falling in a number of the capital cities, some may have thought it would be a good time to jump back into the property market.

However if you consider the months that followed, the easing and intensity of the falling market have been like a roller coaster rather than a steady decline.

A daily home value index created by Core Logic showed house values deteriorating at a mixed pace. There were times when prices in Sydney were falling that rapidly that if the decrease had continued for 12 months, values would have diminished by a quarter.

Whilst data can provide an indication of what has occurred it is not a crystal ball showing us the future.

To consider the question of whether prices will fall there are a number of factors to contemplate:

  • There has been a boost in confidence ignited by the surprise election victory by the Coalition.
  • The Australian Prudential Regulation Authority (APRA) has proposed lowering the interest serviceability rate that Lenders utilise when assessing a borrower’s affordability.
  • Recent Reserve Bank of Australia interest cut.

However another faction suggest the cut was due to the weakness of the economy, an increase in unemployment and a record-low credit growth.

Additionally with household debt being higher than ever before there still may not be a great eagerness for people to purchase properties.

Really – Anything could happen. If you do decide to buy there is one thing that is certain and that is that you should consult professionals – your accountant, your financial planner and engage an experienced mortgage broker!

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