ANZ revise forecast upwards to 20 percent house price declines in Sydney and Melbourne

ANZ revise forecast upwards to 20 percent house price declines in Sydney and Melbourne
ANZ revise forecast upwards to 20 percent house price declines in Sydney and Melbourne

ANZ have revised their forecast for the housing markets and now see prices falling as much as 20 percent in Sydney and Melbourne.

They previously predicted 10 percent falls peak to trough on their second forecast revision back in June.

The ANZ said expect Sydney house prices to return to 2015 levels, with the current weakness running through to 2020.

They now forecast declines between 15 to 20 percent.

 
Sydney and Melbourne had been proving more difficult to predict than the other capitals.

"Until recently, housing prices have been performing broadly as we expected," ANZ's economist Daniel Gradwell and Jo Masters said. 

"In fact, most capital cities are still tracking in line with our forecasts. 

"Sydney and Melbourne, however, are not.

"We had expected by this stage to see some evidence that price declines in these cities were moderating, as the impact of credit tightening started to wind down.

"But price falls are continuing at a material pace and are broadening through most segments of these markets." 

The revisions for the Sydney and Melbourne outlook are now more in line with fellow economists.

CoreLogic-Moody Analytics however suggest Sydney house prices will grow 0.6 percent in 2019.

 

Tags: 
Anz Forecast

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