CBA tips 18% peak-to-trough fall in Sydney, Melbourne home prices

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Commonwealth Bank economists expect larger falls in house prices due to this week’s interest rate rise, forecasting peak-to-trough declines in dwelling prices of 18 per cent in Melbourne and Sydney over this year and next

Commonwealth Bank economists expect larger falls in house prices due to this week’s interest rate rise, forecasting peak-to-trough declines in dwelling prices of 18 per cent in Sydney and Melbourne over this year and next.the banking giant’s economists said there had been a “clear shift in tone and stance” from the central bank, and they now expected a more “aggressive” cycle of rate rises.

In previous forecasts from March, CBA’s economics team had tipped a more mild 3 per cent decline over this year and a 9 per cent fall next year in both Sydney and Melbourne. The updated forecast comes amid investor fears that a quicker series of rate rises could mean more mortgage borrowers find themselves in financial pain, causing bank shares to plunge since Tuesday. The slide continued on Thursday, as CBA shares fell another 2.6 per cent, Westpac fell 3.7 per cent, and ANZ Bank National Australia Bank both fell 2.3 per cent

CBA had previously thought the cash rate would settle at 1.6 per cent next year, but it now believes the RBA will raise rates to the “contractionary” level of 2.1 per cent by the end of this year.

 

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Doesn't help when Dictator Dan is still banning over 100,000 people from working which is crippling all industries who need staff which is destroying our economy and peoples lives

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Sydney, Melbourne home prices could fall 20 per centHome prices in Australia’s biggest cities rose the highest and have the furthest to fall as mortgage interest rates rise faster than expected. “Could fall 20%” 😂 I guarantee those well located shacks selling for $3 million last year will be closer to $2 million in 2 years time. Judgement day has arrived. Morons thought rates would never go up and house prices never go down Well they just went up 30%, so a net gain of 10% seems about right. BringbackBernie That’s OK.RBA has done what Labor and LNP at State and Federal have failed to do for the last 20 years, address housing affordability. A good 20% will do it. Some will pay a price but greed got the better of them as were into capital gains investors and first home owners alike.
Source: FinancialReview - 🏆 2. / 90 Read more »