Price Growth Tipped To Slow Down

UBS economists say house price gains are expected to slow although prices are unlikely to fall in the near-term while interest rates stay low and unemployment remains benign. It says there is some risk of oversupply hitting the housing market around 2017, but it would only be in high density pockets in the Sydney and Melbourne inner city areas.

Even then, foreign demand for new property may keep the balance of demand in excess of available supply. UBS forecasts house price growth (the average across the cities) to moderate to 6% by the end of 2015 and slow to 3% in 2016. House prices rose an average 9% in the year to April, led by a 15% jump in Sydney

Want to read more? http://www.news.com.au/finance/real-estate/property-price-growth-tipped-to-slow-by-mid-2016/story-fncq3era-1226961498661