Australia’s property prices have been on a downward curve for some time. And according to Dr Shane Oliver, Chief Economist at AMP Capital, they may well continue to fall even further throughout the year.
So far, CoreLogic data indicates that by December property prices in Sydney had already fallen 11% and in Melbourne 7% from their high in September 2017.
But with a number of factors affecting the market, including the tighter lending regulations and uncertainty around tax changes in the event of a change of government in this year’s election, a continued downward price trajectory is expected.
Earlier this week, Oliver predicted an eventual drop of around 25% by the time the price curve bottoms out. This would bring average prices in line with where they sat back at the start of 2015.
Of course, this is great news for those who have been struggling to buy, particularly first-time buyers. They can take advantage of this as an extended opportunity to get into the market before the eventual price rise begins again.
And one of the other factors in the price fall is the increase in supply, meaning there are more opportunities than ever for buyers, particularly those looking for apartments.
As experts do their best to predict the outcomes of the downturn, the best advice most of them will give to buyers is this: nobody knows when the tide will turn again, so if you are in a position to buy, this may be your best chance.
This article is merely commentary and suggestion. Contact a professional before making any financial or purchasing decision.