Most economists were wrong on house prices in 2022

Economists at three of the nation’s four major banks failed to read the tea leaves when they predicted a year ago that house prices would keep rising in 2022, albeit at a far more pedestrian pace.

Leading the slump was Sydney, which recorded a 12.1 per cent correction to leave the city’s median home value at just over $1 million, while Melbourne home values retreated 8.1 per cent to end the year at $725,000, and on track to wipe out all of their COVID period gains.and others facing the prospect of selling their homes at a loss – was anticipated by any bank economist.

Dr Oliver said he expected house prices to start falling at some point “later” in 2022, followed by a 5-10 per cent decline in 2023. “But much depends on where and when the cash rate peaks,” he said. “If it rises above 4 per cent, there will be no recovery for 2023.”

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House prices fell 5.3 per cent in 2022 — what happened in your region?Australian housing prices were down 5.3 per cent over 2022, marking the first time housing values have fallen over the calendar year since 2018. Here's how your region fared. I’m not looking to sell so I don’t care. Good news for buyers though, as long as they can pay cash. Value goes down and prices go up They will come down much more......much much more.
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