Thursday, July 11, 2024

The eye of the storm: House prices still have a long way to fall

The eye of the storm: House prices still have a long way to fall

It’s a nail-biting period for homeowners. The rate of decline in house prices eased again in September suggesting a softer landing for the market but if the consensus of economists is to be believed, it’s not over yet.

We could be in the eye of the storm. And if house prices experience a peak to trough fall of between 15 per cent and 20 per cent, as many economists expect, we are less than half way there given the national market is off only circa 6 per cent.

Even if the Reserve Bank of Australia, which places a more conservative 11 per cent estimate on house price devaluation, is closer to the mark, there is still a long way to go before the market cools down. […]

Read the original article at SMH