Declining stock levels are likely to put a floor under falling property prices during the current correction phase. Picture: NCA NewsWire / Nikki Short
Despite the mortgage pain worsening, the winter hibernation has already been triggering a seasonal reduction in auction listings. Sydney started July with 750 weekly scheduled offerings. This week sees 650 auctions, according to PropTrack.Declining stock levels are likely to put a floor under falling property prices during the current correction phase. Picture: NCA NewsWire / Nikki Short
Yes, there will be distressed listings, but many will be mopped up by investors, who’ll come out of the stock market and from low deposit banks, into property. Out in front NAB forecasts Sydney prices to fall 8.8 per cent this year and 13.4 per cent next year. The ANZ’s modelling suggests a 20 per cent drop. The CBA expects an 11 per cent fall this year and 7 per cent next year. With the lowest figure, Westpac forecast a 3 per cent dip this year; 9 per cent in 2023 and 2 per cent in 2024.The RBA, which currently says house price direction is not its focus, only has the one tightening lever, and it hits all capital cities.