The rating agency weighing in on Australian property markets

The report says the agency is looking for futher further falls in house price in Australia. On Australia's two largest cities Moody's tips:

  • House prices to fall 7.7% this year
  • Sydney house prices forecast -9.3 % in 2019
  • Melbourne … forecast is for -11.4% this year

Confirming we are all, in fact, doomed the agency adds:

  • underlying trend in consumption has been weak, as consumers have dipped into savings absent decent wage growth over the past few years
  • The downside risk is that the housing market declines sharply, more than expected, and the negative wealth effect becomes concerning across households, causing consumption to drop and the overall unemployment rate to rise.

And, one for the Tasmanians … Moody's tips Hobart +4%. In your face Sydney and Melbourne!

---

Oh, Moody's weighed in on politics too:

  • Another potential downside risk is from proposed changes to negative gearing that could take place after the federal election, scheduled to occur by 18 May"