First time in Australia the housing downturn is going longest, Know the reasons
It is expected by the researchers that Australia’s housing values could go down by 12% over the next four years. It is estimated that August 2018 is the consecutive eleventh month when the Australia’s house value is going down slowly but continuously.
The open advice from property valuers to Australians is – ‘People should be mentally prepared for the longest and deepest housing downslide in the country.’ The reason for this downturn is higher dwelling values, tighter credits, rising mortgage rates affecting people’s housing affordability to a much extent.
The researcher and property valuers are estimating that – “In the year 2020 the property prices in the capital city of Australia that is Sydney and Melbourne will decline by 15%.”
Looking at the current housing market position of the country the property valuation Sydney are predicting – “Price falls in Sydney and Melbourne will depress consumer spending as wealth effect is now going in reverse.”
It is found that Sydney and Melbourne are leading the decline in housing values among other cities of Australia. The Property value falls has recorded in – (.3)% in Sydney, (.6)% in Melbourne and Perth, (.2)% Brisbane, (.1)% in Hobart in last one month. But there are some cities in Australia where housing values are noted high. Adelaide housing value raised by (.3)%, Darwin by (.1)%, Canberra by (.5)%.
Property valuers or home valuers are now warning people that – “Property prices will decline slowly for a number of years.”
The housing downslide has lasted longer than a year (on an average) in the country. It is recorded that – Since 1980 to till now Australia’s all housing downturns, the price declines in this downslide have been the smallest. As recorded this downslide in Australia’s economy is the longest and deepest one, with the full effect of high mortgage rates, tighter credit conditions, poor housing affordability, rising supply, declining price growth are pushing dwelling prices down in the country.
Australian dwelling prices have fallen by 3 percent from its peak. This is a mildest downturn when its compared to the previous downturns. Though it will not be going to call the recession in Australia it will limit the economy’s ability to grow at above the trend levels.
If you are confused to buy or not to buy a home in Australia and think where you should buy the property in Australia whether it is residential, commercial, for your own use or for investment purpose, property valuers are here to guide you. They are the experts and know all about the real estate property market well.
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