Australian Housing Market Update December 2019 | PROPERTY INSIDERS

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Australia’s housing markets rebound continued over the last month, led by strong price growth in our two biggest cities, Melbourne and Sydney.

Since bottoming out in June earlier this year, the national dwelling value index has recovered strongly.

Home buyers are back, sellers are putting their properties up for sale, first home buyers are getting a foot on the property ladder and investors are slowly returning.

They are all buoyed by falling interest rates, the prospect of another rate cut early next year, less stringent lending criteria and a generally positive media.

This now marks the fifth consecutive month of price gains in Melbourne and Sydney, which was where the downturn hit the hardest over the last couple of years.

As a result, auction clearance rates are up, asking prices are up, property values are increasing and some property commentators are even forecasting double digit capital growth next year.

However our property markets are very fragmented- not all markets are performing the same, so to explain what’s really happening in our property markets and to give as his forecast of what’s ahead let’s chat with Australia’s leading housing economist – Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au

What’s ahead for property prices?

Sydney’s housing market is on track to recoup the 15 per cent loss in prices suffered during the 18-month downturn early next year and reach a new record high by March.

MelbourneMelbourne is on track to hit a new record high of prices in January, with property values just 3.7 per cent below their peak reached in October 2017.

Property price growth is likely to slow down once our 2 big capital cities reach new peaks with property values likely to rise more modestly to the end of 2020 growing about 5 to 6 per cent over the year.

It’s a great time to buy counter cyclically in Sydney and Melbourne and ride the property next wave of the property cycle in Brisbane.

The downside for these capital city markets is minimal and there is now plenty of upside ahead over the next few years.