Analysts forecast Australian house prices to fall up to 15% from peak
Leading economists predict Australia's housing market could drop between 10% and 15%, exceeding the 8% declines seen in previous downturns since the 1980s.
Australia's property market faces its steepest decline since the 1980s, with leading analysts forecasting a potential price drop of up to 15%. Housing economist Cameron Kusher stated the rate of decline is accelerating, with some declines already reaching 5% from recent peaks. The previous two nationwide slumps occurred in 2017 and 2022, both finishing with an 8% peak-to-trough drop. Kusher noted that current forecasts may surpass these historic lows sometime in December. Many analysts are revising their projections lower as market conditions sour. HSBC chief economist Paul Bloxham adjusted his base case, anticipating further Reserve Bank rate increases will push housing prices even lower.
