The best way to deal with Australia’s capital city housing markets is to maintain perspective.
For example, property values in Sydney could decline by about $22,400 in 2019, a 2% drop, based on the latest report from BIS Oxford Economics.
However, that is less than 50% of the $54,675 Sydney’s house price median increased to merely three months from September to December 2016.
On the other hand, prices in Melbourne shouldn’t experience significant drops over the next three years, based on the same report, which forecasts an increase of around 1% per annual through 2021.
The fact is, when viewed on a broader sense, the projected correction equals to a minor issue for most homeowners.
UK-based BIS Oxford Economics is just the latest economic organization to explain the Australian property correction. It joins Macquarie, UBS, AMP, Capital Economics, ANZ, and more.
According to its latest report, Sydney’s median is expected to bottom out 8% less than the 2017 peak of $1.2 million and stand at 4% below it by June 2021. However, the figure will still account for a 3% rise from present levels.
This projection for fairly moderate house price decline follows a surge in Sydney’s median house prices from $560,933 to $1.2 million in less than 10 years, and Melbourne’s from $460,800 to $913,162. This represents a 113.3% and 98.5% increase, respectively.
The drop of 2% forecasted for Sydney by BIS Oxford Economics would be recovered, and a little more, by 2021.
If you have a property in Newcastle and interested in knowing how your suburb is currently performing, we are offering you our time to provide a report. Call us on 0418447856 to find out how and when we can assist you.