Perth housing market leaving worst behind: CoreLogic-Moody's
The housing market in Perth is showing signs the worst is behind with value gains possibly showing this year, according to the CoreLogic-Moody’s Analytics Australian Home Value Index Forecast, 2017Q1.
CoreLogic-Moody's Analytics predict a 2.8 percent gain in detached housing values for 2017 following a 4.1 percent decline in 2016.
"The downturn in mining investment continues to weigh on Perth’s housing market, but the recent rally in key commodity prices suggests that the fall is over," it said.
"However, Perth’s housing market is unlikely to rebound sharply because commodity prices will remain well below the levels experienced during the boom in 2011.
"Perth’s housing market is showing signs that the worst is behind.
"Over the year, the decline in total values across Perth slowed to 3.2 percent in January compared with the 7 percent falls in the second half of 2016.
"The trough has likely been reached in the rental market, as rents have stopped declining since late 2016 and have stabilised.
"Detached dwelling prices in Perth are forecast to rise 2.8 percent this year after a 4.1 percent fall in 2016.
"Apartment values are expected to rise 5.6 percent following a 3.3 percent decline last year.
"The recovery will continue through 2019 thanks to slower supply growth; building approvals peaked in mid-2014 and have since fallen 48 percent."