Business News announced that a research collaboration between CoreLogic and ratings agency Moody’s has predicted a turnaround in Perth’s property market this year with a 2.8 per cent rise in detached house values foreshadowed.
Although there is still a long way to recovery, the report does suggest conditions are improving.
The CoreLogic-Moody’s Home Value Index forecast detached home prices in Perth to increase by 2.8 per cent in 2017, after falling 4.1 per cent last year.
The report also forecasts apartment values to ride by 5.6 per cent after a 3.3 per cent decline in 2016.
“The recovery will continue through 2019 due to a slower supply growth; building approvals peaked in mid-2014 and have since fallen 48 per cent,” the report states.
The report continues to say the downturn in mining investment continued to weigh on Perth’s housing market, but the recent rally in key commodity prices suggested that the fall is over.
“However, the Perth’s housing market is unlikely to rebound sharply because commodity prices will remain well below the levels experienced during the boom in 2011
“Perth’s housing marketing is showing signs that the worst is behind.”