To sum up last year, CoreLogic has released data showing that Australian dwelling values fell 4.8 per cent throughout 2018, in the weakest housing market conditions since the global financial crisis.
As we start a new year, figures like this continue to inform consumer confidence, which has taken a hit of -4.7 per cent on the Melbourne Institute and Westpac Bank Consumer Sentiment Index. A reading of 99.6 per cent for January 2019 is the lowest since September 2017. According to Westpac’s Matthew Hassan, although confidence usually dips in the new year, they’ve seen a more severe fall due to “growing pessimism about both the economy and family finances”.
In good news, realestate.com.au’s January 2019 Property Outlook reveals home lending restrictions are unlikely to tighten further, although the full impact of the Royal Commission will be known with the release of the final report in February. If we see a change of government, it could mean more stable conditions for the year ahead. However, if significant policy changes to negative gearing and capital gains concessions do proceed, we could, unfortunately, see further falls.
The REIA has called for the Federal Labor party to come clean about its election policies, as President Adrian Kelly argues that all Australians deserve to know exactly what they are voting for.
Download and read the full Market Essentials – February 2019 Report.