Correction in Gladesville house prices forecast

March 24, 2018 by  

A temporary fall in house prices within suburbs like Gladesville may be on the cards.

A slight loss of momentum in Sydney’s housing market has already been recorded in CoreLogic data. However, it is Moody’s Analytics that has picked up on this apparent trend. The suggestion is that property values in much of Sydney could fall further, with the likelihood being that apartments will not be as affected as much as houses. The expectation is that Gladesville prices will follow this pattern in line with the performance of areas like the Inner West.

Demand for brochure printing is not reliant on one economic sector; the slight decline in Sydney’s house prices is apparently related to the high performance of the market during the last year, and could help with affordability issues. Moody’s Analytics explained the logic behind the turnaround:

“Incomes in New South Wales have increased faster than the national average and underpin some of the recent gains in home values. However, housing values have risen even faster and are overvalued relative to equilibrium value. Therefore, Moody’s Analytics expects a correction across New South Wales.”

The fact is that the supply of apartments is still growing. However, the tendency is for the price of this type of accommodation to be less volatile than house prices. Overall, Moody’s Analytics has stated that the whole market should return to progress within a year.