House prices to keep falling in eastern capitals: Finder's RBA survey

House prices to keep falling in eastern capitals: Finder's RBA survey
House prices to keep falling in eastern capitals: Finder's RBA survey

Experts and economists in Finder.com.au's RBA Cash Rate Survey are predicting further drops of $50,000-$60,000 in Melbourne and Sydney.

When asked for their housing price predictions, experts forecast 6% falls still to come in Australia’s eastern capitals of Sydney and Melbourne by the end of 2019.

Graham Cooke, insights manager at Finder, said now is a great time to be in the market if you’re lucky enough to have a deposit saved.

“A 6.3 percent drop in Sydney would see average house prices dip a further $58,000, while a 6.6 per cent drop in Melbourne this time would mean a fall of more than $49,000," Cooke said.

“Remarkably, should these price drops eventuate as forecast, this would make Sydney and Melbourne property the cheapest it has been in four years,” he said. 

Click here to enlarge.

House prices to keep falling in eastern capitals: Finder's RBA survey
Source: Finder and CoreLogic.

Cooke said prospective buyers should use this speculation to their advantage.

“If you’re buying in a falling market, negotiate to the point where you think it will turn.

“In other words, bargain for at least 6 per cent under the asking price in Sydney, or 7 per cent in Melbourne,” Cooke said.

Cooke said property owners in Adelaide and Hobart have reason to celebrate.

“Interestingly, experts predicted property prices in both Adelaide and Hobart to grow, so it could be worthwhile considering investment opportunities in these cities,” Cooke said.

 

 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Finder.com.au 2019 Property Price Forecast

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