Home prices plummeting in most capital cities

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A recent report by financial intelligence firm Moody’s Analytics predicted that home prices across most of Australia’s capital cities will continue their downward trajectory through 2019.

The firm forecasted home-value losses of up to 7.7% across the nation this year. The drop is even more pronounced in the major housing markets of Sydney and Melbourne, with the firm predicting home prices to fall by 9.3% in Sydney and 11.4% in Melbourne. 

Other capitals in Australia are also expected to feel the pinch. Homes in Perth are expected to decline by 7.6% in 2019, and in Darwin they’re expected to slide by 13.1%.

On the other hand, home prices in Adelaide are forecasted to increase by 1% in 2019. Hobart and Brisbane are also expected to see modest increases in home prices.

Bruce Hockman, chief economist at the Australian Bureau of Statistics, pointed to several factors that may have caused home values to fall in Sydney and Melbourne.

“While property prices are falling in most capital cities, a tightening in credit supply and reduced demand from investors and owner-occupiers have had a more pronounced effect on the larger property markets of Sydney and Melbourne,” Hockman told News.com.au.

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