Home value growth tipped to slow
Moody’s Analytics and CoreLogic have predicted home value growth across Australia in 2016 will likely slow down, following two years of exceptional home value appreciation and double-digit growth in many areas.
This forecast is based on the new CoreLogic-Moody’s Analytics Australian Forecast Home Value Index, launched today, which provides a quarterly projection of the trend of residential home values across the country over the next 10 years.
Forecasts are updated monthly to help market participants identify opportunities and manage risk exposures.
“We are excited to partner with Moody’s Analytics to launch this Forecast Index to provide a unique and critical perspective on Australia’s most valuable asset class, currently valued in excess of $6.4 trillion AUD,” said Craig Mackenzie, CoreLogic EGM, Banking & Finance.
“On the outlook for the housing market nationally, we expect house price appreciation to slow in 2016. Our forecast reflects lower income growth as the Australian economy transitions away from mining-related investment, as well as the strong build-up of housing supply over the past two years,” said Alaistair Chan, a Sydney-based economist based at Moody’s Analytics.
“Nevertheless, accommodative policy, robust rental growth, and a recovering labour market are expected to support valuations over the medium term."