Home News Brace for deeper price cuts in NSW and Victoria

Brace for deeper price cuts in NSW and Victoria

Font size :

The last few months of 2018 were all doom and gloom as confidence levels in the housing market dropped to below average, indicating deeper price corrections this year.

The last few months of 2018 were all doom and gloom as confidence levels in the housing market dropped to below average, indicating deeper price corrections this year.

This was the main finding of the latest National Australia Bank Residential Property Survey. Overall, the NAB Residential Property Index fell to a new survey low in the final quarter of the year, down by 11 points to -20 from -9 in Q3.

NAB chief economist Alan Oster said confidence levels sank lower as house prices continued to decline across the country, particularly in New South Wales and Victoria.

"This very poor result was not unexpected given what’s been happening on house prices," he said.

Property professionals polled in the study expected sharper house-price falls in New South Wales and Victoria over the next two years. Sydney and Melbourne are expected to be hit the hardest by the downturn, and will likely witness around 15% peak-to-trough declines. Perth is also anticipated to record small price declines.

"That said, further tightening in credit conditions and weaker price expectations in the investor market could likely further weigh on prices," Oster said.

However, homebuyers looking for growth should not lose hope. According to NAB, there are few suburbs that are likely to record above-average growth this year:

State

Suburbs

New South Wales

Bondi

Newcastle

Penrith

Surry Hills

Sydney

Victoria

Victoria

Ballarat

Frankston

Melton

Seaford

Werribee

Queensland

Brisbane

Coolangatta

Gold Coast

Sunshine Coast

Western Australia

 

Armadale

Scarborough

Tasmania

Tasmania

Hobart

 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

What you need to know when buying a tenanted property What you need to know when buying a tenanted property

Are you occupying the property or are you taking over as the landlord? Read more

Consider these things before you fix your home loan rate Consider these things before you fix your home loan rate A fixed-rate home loan has its pros and cons — see if it fits your current needs ... Read more

How long does a loan or mortgage pre-approval last? How long does a loan or mortgage pre-approval last? A pre-approval can be a huge head start in your home buying journey ... Read more

Understanding comparison rates Understanding comparison rates Comparison rates help you find out how much your home loan really costs ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Feb 23, 2019
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords