That's interesting, there are still people saying there is a housing shortage in Melb & Syd..
Lending clampdown dampens house prices
MELISSA JENKINS
Australian Associated Press
3:04PM June 1, 2018
The housing market slowdown is entrenched and likely to continue in Sydney and Melbourne until at least 2020, a new report says, as nationwide property values post the first annual slide in five-and-a-half years.
Australian housing prices fell 0.1 per cent in May, taking the annual loss to 0.4 per cent, which was the first time values have fallen on annual basis since October, 2012, according to property data firm CoreLogic.
AMP chief economist Shane Oliver said the banking regulator's tightening of lending standards for investors and interest-only borrowers, begun in July 2017, was continuing to impact.
"Along with poor affordability, rising supply, falling price growth expectations and the end of FOMO (fear of missing out) are pushing prices down in cities which have seen strong gains over the last few years," he said.
The banks' latest round of tighter lending standards concerning borrower's income and expenses is also contributing, particularly in Sydney and Melbourne, which have high home price to income ratios.
Mr Oliver tips prices in Sydney and Melbourne will fall another four per cent this year, five per cent next year and still be sliding in 2020.
