Property trends in 2018

According to Corelogic, the following are trends we will see in the property market during 2018. Throughout 2018, we’re expecting to see:

  • A further slowdown in national housing market conditions.
  • Credit policies likely to remain tight as regulators keep a watchful eye out for a rebound in investment credit growth or, a reversal in the trend towards fewer mortgages with a loan to valuation ratio of more than 80%.
  • Interest rates are likely to remain on hold in 2018. Higher interest rates would stifle household consumption and business investment and could cause financial distress amongst a highly indebted household sector, however rates aren’t likely to fall due to concerns of refueling the controlled slowdown in the housing market.
  • National dwelling values will fall further in 2018, driven lower by falls across Sydney and to a lesser extent, Melbourne. After values surged 75% higher over Sydney’s growth cycle and 59% higher across Melbourne, it’s rational to expect some slippage in dwelling values across these cities.

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