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House prices expected to fall in 2018

The housing market will be quieter overall in 2018, experts say, but there will be patches of price growth, though not necessarily in the capital cities.

CoreLogic head of research Tim Lawless' expectations for the housing market in 2018:

* National dwelling values are tipped to fall further in 2018, driven lower by falls across Sydney and to a lesser extent, Melbourne.

* Australia's other capital cities are likely to see more positive conditions.

* Brisbane's house price growth is expected to be higher in 2018, due to an improving jobs market and rising migration rates

* In Adelaide capital gains eased in the second half of 2017, a trend that may continue into 2018

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* Perth housing values are edging slightly higher after falling 11 per cent since values peaked in 2014, however the recovery is expected to be gradual

* Hobart's housing market is experiencing dramatic growth that is unlikely to be sustained with values up about 11 per cent in 2017

* Darwin's home values are continuing to move through a material correction, with dwelling values down 21 per cent since peaking in early 2014.

* Canberra's housing market has shown reasonably strong growth conditions, however there were signs in late 2017 that growth rates are starting to ease as lending conditions tighten

* "Satellite cities" such as Newcastle and Wollongong in NSW, and Geelong in Victoria, have started to outperform their capital city counterparts thanks to better affordability and improved transport

* Diverse buyer demand and better affordability is expected to drive house prices higher on Queensland's Gold and Sunshine Coasts.

* Overall, 2018 is set to be a quieter year for the property market


2 min read

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Source: AAP



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