New report shows real estate market downturn is real, but overblown
- Inaccurate figures and hasty predictions exaggerated the downturn
- In 2018, Sydney’s market fell by 1.48%, Melbourne by 5.93%
- Adelaide saw a property price increase of 1.1%
A recent report from realestate.com.au has reflected on the downturn seen throughout 2018, continuing to tug on the market in 2019’s early stages, surmising that Australia is “now in the midst of a housing downturn,” but labelling this slump as “not as bad as widely reported.”
The report attributes this exaggeration to inaccurate figures and overly hasty predictions. According to realestate.com.au, Sydney saw a downturn of 1.48%, while Melbourne dropped by 5.93%, these figures lower than those reported elsewhere.
Throughout 2018, a significant downturn could be observed throughout Australia’s real estate market, particularly in its larger markets – New South Wales and Victoria struggled to creep above 50% clearance rates each week.
Other states exhibited more stability, South Australia in particular often achieving clearance rates in the 60s and 70s range – though larger markets are frequently host to over 1000 scheduled auctions in a week, South Australia often seeing 100 to 150, SA in nonetheless a consistent performer among the country’s middling markets.
Indeed, realestate.com.au ascribes to Adelaide a 1.1% increase in property prices for the past year.
Canberra, Hobart and Brisbane are also reported to be increasing. The ACT kept pace with South Australia for much of 2018, though in the last few months of the year, clearance rates for the territory slumped somewhat, often resting in the 40s.
Tasmania and Queensland, as they appeared in realestate.com.au’s weekly auction results throughout 2018, were fluctuating markets – a small sample size of recorded auction results led to clearance rate that leapt up and down.
However, this report confirms that amid these erratic figures, a general upturn did take place.
Looking to 2019, the report predicts continued but restrained downturn in Sydney and Melbourne – downturn which should be largely abated by consistency in other regions, as in 2018.
With a banking royal commission taking place and a Federal election incoming, the latter half of the year holds uncertainty for all markets, rising and falling, large and small.