House values expected to fall sharply

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 3 : 10-Apr-19

Moody’s Analytics forecasts that house prices will fall by 9.3 per cent in Sydney during 2019, and apartment prices will decline by 5.9 per cent. The ratings agency expects the prices of houses and apartments in Melbourne to fall by 11.4 per cent and five per cent respectively. Moody’s economist Katrina Ell says factors such as stricter lending conditions in the wake of the Hayne royal commission and Labor’s proposed negative gearing reforms could weigh on the housing market. Moody’s expects the cash rate to remain on hold until mid-2021, although it says further housing market weakness could see a rate cut before the end of 2019.

CORPORATES
MOODY’S ANALYTICS AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA, CORELOGIC AUSTRALIA PTY LTD

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