Housing affordability outlook for 2019

Australia housing affordability 2019

Whether you’re looking to buy or sell your home, invest, or are just curious about what’s happening in Australia’s property market, our article will help you gain an insight into housing affordability for 2019.

A snapshot of current median property prices

According to 'Domain’s House Price Report for December 2018’, median property prices in Australia’s capital cities were:

  • Sydney – Houses: $1,062,619 Units: $702,012
  • Melbourne – Houses: $833,321 Units: $479,306
  • Brisbane – Houses: $566,058 Units: $369,882
  • Perth – Houses: $546,281 Units: $351,818
  • Adelaide – Houses: $537,971 Units: $321,430
  • Hobart – Houses: $479, 685 Units: $342,796
  • Canberra – Houses: $738,933 Units: $412,718
  • Darwin – Houses: $514,876 Units: $321, 990

The national outlook

Economist Trent Wiltshire, writes in the ‘Domain Property Price Forecast’ report, that “2019 looks likely to be a year of greater stability” for property. He notes while prices will fall that “the pace of those falls will slow in the first half of 2019, before we move into another moderate growth phase”.

For each of Australia’s capital cities, the report predicts the annual percentage change (to the December 2019 quarter) to be:

  • Sydney: House prices will see no change (0%), while units will grow 3%.
  • Melbourne: House prices will drop 1%, while units will grow 1%.
  • Brisbane: House prices will grow 4%, while units will grow 3%.
  • Perth: House prices will grow 5%, while units will grow 2%.
  • Adelaide: House prices will grow 2%, while units will grow 2%.
  • Hobart: House prices will grow 2%, while unit prices will see no change (0%).
  • Canberra: House prices will grow 4%, while units will grow 2%.

Note: Darwin was excluded from the forecast due to small volumes and market volatility.

The Australian economy in 2019

In his ‘The Australian economy in 2019 – house prices, growth and interest rates’ report, Dr Shane Oliver, chief economist at AMP Capital, writes that, in 2019, “housing is turning down, uncertainty is high around the global outlook and it’s an election year, which will add to uncertainty.” 

Oliver predicts that economic growth in Australia this year will likely be constrained to around 2.5% to 3%, that wage growth and inflation will remain low, and that the Reserve Bank of Australia (RBA), which sets monetary policy is likely to cut rates.

So, how do Australians feel about it all?

Of the 2,000 Australians interviewed as part of the ‘NAB Consumer Housing Survey’, even with falling house prices, over 8 in 10 people don’t intend to buy or sell property, take out a mortgage or renovate an investment property in the next 12 months.

 

If you’re looking at purchasing a home in 2019 CCI Personal Insurance can assist with your Home and Contents Insurance needs. Get a quote or find out more about our home insurance policies today.

 

Sources:

https://www.domain.com.au/news/domains-property-price-forecasts/

https://www.domain.com.au/product/house-price-report-december-2018/

https://corporate.amp.com.au/newsroom/2018/december/australian-economy-2019-house-prices-growth-interest-rates

https://www.rba.gov.au/qa/

https://business.nab.com.au/wp-content/uploads/2019/01/Consumer-Housing-Survey-2019.pdf [pg 3]