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Australian property prices set to turn a corner in 2019, new modelling suggests

After a tumultuous 12 months for Australian property, the market looks set to turn a corner in 2019. Domain’s new Property Price Forecast report looks at how prices have changed in response to drivers such as population growth, interest rates, bank lending, unemployment rates and market sentiment. The modelling then forecasts the most likely scenario for capital city property prices over the next two years. The most likely scenario – according to our forecasts – is that Australian house prices will keep falling in the first half of 2019 before turning around and growing modestly, resulting in growth of about 1 per cent in 2019. Prices are then forecast to increase another 4 per cent in 2020.

RBA announces pre-Christmas cash rate

The Reserve Bank announced its cash rate decision for the month of December this afternoon, set against a backdrop of a property market that continues to cool despite record low rates. As widely anticipated, the RBA has left the official cash rate on hold at 1.5 per cent. Australia’s top economists and market commentators were united in predicting another hold, including Leanne Pilkington, managing director at Laing+Simmons, who said increasing it now would have been unwise. “Subdued housing transaction activity and price declines in some markets make an interest rate increase in the near term an unnecessary risk,” she said. “A strong labour market will be a key factor supporting the economy

 
 
 

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