According to the latest QBE Australian Housing Outlook 2017-2020, an oversupply of units and reduced bank lending to investors is expected to dampen price growth in the housing market in coming years.
The QBE-commissioned BIS Oxford Economics report analyses historical performance in the residential housing market, based on median prices, and forecasts market movements to 2020.
It predicts that an oversupply of apartments and changed lending conditions for investors – such as lower loan-to-value-ratios and higher interest rates for interest-only loans – will dampen economic conditions and slow price growth.
Apartment prices will fall but house prices in most major cities will rise modestly within the next three years – except Sydney, which is forecast to flatten to -0.2% growth by 2020.
You can download the report if you want to read more!
Your mortgage broker and friend,
Terry
