Melbourne house prices will slip only 1% in 2019: Domain

Melbourne house prices will decline by just 1% in 2019 after a 9% fall in 2018, according to the latest Domain forecasts.

They also forecast that Melbourne house prices will rise by about 4% in 2020. 

Domain Economist Trent Wilshire said: "Melbourne house prices are predicted to fall by about 11% from a peak of $910,000 in December 2017 to their lowest point of about $800,000 in mid-2019."

"At this low point, Melbourne house prices will be back at their late 2016 level."

Source: Domain

Domain has forecast that Melbourne unit prices are to fall by about 1-2% in 2018, and then prices are expected to grow by about 1% in 2019 and 2020.

Melbourne unit prices are predicted to fall by about 3% from their peak of $507,000 in March 2017 to their lowest point of about $490,000.

Source: Domain 

"As in other capitals, tighter lending conditions and weak sentiment will weigh on Melbourne property prices in 2019," Wiltshire said. 

"But Victoria’s unemployment rate is falling and Melbourne’s population growth is expected to remain very strong, with annual growth remaining above 2% over the next few years."

"This will help to absorb the large pipeline of new housing supply expected to hit the market over the next couple of years."

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