After a 25.3 per cent surge in 2021, Sydney prices are expected to fall by 8.8 per cent this year and 13.4 per cent in 2023, NAB’s revised forecasts show.
House prices in Sydney and Melbourne homes could fall by 20 per cent or more by the end of next year according to NAB’s latest housing forecasts, which have been revised sharply lower as interest rate rises come faster and harder than expected.
“What we’re seeing at present doesn’t have a liquidity impact. When we look at our book we don’t see a big hit to people paying more until early next year. But it scares people when they see rates going up and when people are saying they’ve got a lot further to go,” Mr Oster toldNAB expects Melbourne prices to fall 14.1 per cent next year, while Brisbane and Adelaide will turn sharply negative – by 16.3 per cent and 16.3 per cent respectively – after posting solid gains this year.
He expects households will be facing more of a squeeze by next year as borrowing costs rise. On conservative estimate, some borrowers will be paying $300 a month extra on their mortgage repayments by next year.“That’s a lot. Then there are higher electricity prices, higher fruit and veggie prices et cetera. People get nervous,” Mr Oster said.
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