Home price falls accelerated in August – three reasons why this property downturn will likely be different
AMP’s Dr Shane Oliver discusses the housing market in this edition of Oliver’s Insights.
Dr Oliver summarises the key points as follows:
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Australian home prices fell another 1.6% in August and are now down by 3.5% from their high.
- Rising mortgage rates are the main driver and there is likely more to go. We continue to expect a 15-20% top to bottom fall in home prices out to the second half of next year, followed by a gradual recovery.
- There are three reasons why this downturn will likely be deeper and the recovery slower than in past cycles: higher home price to income levels; higher debt levels; and an end to the long-term decline in interest rates.
You can access a copy of this edition of Oliver’s Insights here:
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