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Transcript:<\/strong> In Sydney, median house and apartment prices are expected to fall 4 per cent by 2020. In Brisbane, house prices will increase 7 per cent, while unit prices will fall 7 per cent. \u00a0\u00a0In Melbourne, there is predicted to be growth for houses of 5 per cent over the same time period, but apartments prices would fall 4 per cent.\u00a0 I will have something to say about those comments in just a moment, but for the time being \u2013 back to the report. [flex_video widescreen=”true” vimeo=”true”] [\/flex_video] Transcript: New forecasts expect Sydney property prices will fall in the next two years, while Brisbane and Melbourne will quickly come off the boil.\u00a0 All Australian capital city markets are expected to weaken in the 2017-18 financial year as most tip…<\/p>\n","protected":false},"author":176692471,"featured_media":12822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,11,13,29],"tags":[70,131],"class_list":["post-12821","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-video","tag-featured","tag-videos"],"yoast_head":"\n
\nNew forecasts expect Sydney property prices will fall in the next two years, while Brisbane and Melbourne will quickly come off the boil.\u00a0 All Australian capital city markets are expected to weaken in the 2017-18 financial year as most tip into oversupply, according to forecasts in BIS Oxford Economics\u2019 Residential Property Prospects 2017 to 2020 <\/em>report.\u00a0A stable economy and low interest rates would prevent an American-style crash, the report said, but there would still be price falls in some cities.<\/p>\n
\nA BIS Oxford Economics spokesperson said one driving factor was the falling away of investor demand over the next 12 months due to a tightening in lending.\u00a0 Strong investor demand had been drivers of both the Sydney and Melbourne markets, and the biggest challenge for the Sydney market would be the retreat of investors from the market.
\nInvestors have consistently accounted for more than half the value of residential loans in NSW since 2013.\u00a0 Investors primarily get into the market, expecting capital growth, and if they\u2019re not seeing price growth anymore, then they\u2019ll start pulling back.\u00a0 If and as they start to retreat, the competition they\u2019ve created starts to dissipate a little and that will impact prices.\u00a0 Less competition, less upward pressure on prices.
\nOn prices – I would like to make this point \u2013 median prices are not an indication of rising or falling prices. The median is simply an the mid point in the most dominant price range which is more an indicator of price buying preferences.\u00a0 That is one of the most frustrating issues I have with media reporting around pries, values and market movement.
\nMeanwhile – more and more households are falling behind on their mortgage repayments as a result of rising home loan interest rates.\u00a0 S&P Global ratings reported April\u2019s arrears at one point two one percent \u2013 a slight increase from the one point one six percent figure in March.<\/p>\n","protected":false},"excerpt":{"rendered":"