Tighter credit conditions fuel housing slump into 2019
- Continued declines in the housing market have been dictated by tightening credit policies which have restricted borrowers
- Sydney and Melbourne markets are the biggest drivers of the housing slump
- A rise in prices is predicted to emerge in mid-to-late 2019
The continued plummet in national property prices
The nationwide property price decline has continued to the end of 2018 with a -6.42% change in dwelling values across 5 capital cities since December 2017. This consistent decrease marks the sharpest fall since the GFC as national dwelling values have dropped 4.1% this year. However, the decline is most heavily concentrated in the major cities of Sydney and Melbourne which faced an 8.1% and 5.8% drop, respectively, in the past 12 months[. This fall has emerged from the influx of new apartments and a net drop in migration which collectively fuel the growth of the housing slump.
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