The US-based rating agency, Moody’s Investor Service, is out with its latest report on Australian housing markets and its overall impact on the economy.
“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.”
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