Melbourne/Sydney house prices to fall another $60-$80k

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By Leith van Onselen

A survey of property experts and economists have tipped significant further falls in housing prices across Australia’s cities. From Realestate.com.au:

Finder.com.au insights manager Graham Cooke said the cooling market conditions made it harder for existing homeowners to build up equity.

But they could be good news for first-home buyers with a deposit in hand.

“If you’re thinking of getting into the market over the next few years, hold out until prices have dropped further and use this time to save for your upfront costs,” he said.

“Right now, there’s no need to jump on the first suitable property you see. Waiting a few years could potentially save you thousands of dollars.”

According to CoreLogic, Sydney’s house values had already fallen by 7.2% as at end-August, whereas Melbourne’s had fallen by 4.4%. Add another 8% each, and this takes the peak-to-trough decline to around 15.5% for Sydney and 12.5% for Melbourne.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.