Westline condos urbantoronto . The global property market may continue to cool. The Australian real estate market created the first “inflection point” since the financial crisis in 2018.Please Visit: Westline condos urbantoronto to Get Your VVIP Registration Today!
The latest figures from CoreLogic, a property research firm, show that average house prices in Australia fell nearly 5 per cent in 2018. By the end of 2018, average house prices in Sydney, Australia’s largest city, fell by more than 11 per cent from their peak in 2017 to more than the peak-to-trough decline during the recession 30 years ago. Some analysts say the Australian property market has “entered the winter” and is expected to remain weak in 2019.
At the end of 2018, the property market in many countries and regions around the world cooled one after another. The “volume and price drop” in the real estate market is most obvious in addition to Australia, Hong Kong, Canada and other places. In addition, subject to the economic slowdown and other disruptive factors, the US and UK housing markets are also expected to experience a significant cooling.
Figures released by CoreLogic on January 2 show that average house prices in Australia fell by nearly 4.8% in 2018, the two largest state capitals since the 2008 financial crisis. House prices in Sydney and Melbourne, which account for 60 per cent and 40 per cent of Australia’s turnover, fell 8.9 per cent and 7 per cent respectively in 2018 and 11.1 per cent and 7.2 per cent respectively compared with their peak in 2017. The decline since the peak in Sydney has exceeded the 9.6 per cent decline in house prices from peak to trough during the 1989-1991 recession cycle. In addition, the liquidation rate of Australian home auctions in December has been below 50% for several weeks in a row, which means that the low turnover also sends out a clear sign of weakness.
Tim Lawless, head of research at CoreLogic, said the credit tightening measures of the Australian Financial Regulatory Authority (APRA) were one of the important reasons for the decline and that “financing difficulties” in 2019 could still be one of the biggest obstacles to the improvement of the Australian real estate market. There are also analysts saying that the decline in overseas buyers, the increase in loan interest rates and the increase in housing supply are all exerting downward pressure on house prices.