Gareth Aird, CBA head of Australian economics, said the extent of the price falls will depend on the speed and magnitude the RBA lifts the cash rate.
Sydney’s house prices are set to fall by 11 per cent this year, and Melbourne by 10 per cent, as the RBA raises the interest rate at a higher and faster pace, the Commonwealth Bank of Australia said.and Melbourne prices are expected to slump by a total of 18 per cent each.
“The extent to which prices contract will depend in large part on the speed and magnitude at which the RBA lifts the cash rate.”Nationally, home prices are expected to fall by 6 per cent this year and by 15 per cent from peak to trough. Prices were up 13 per cent in Perth, 15 per cent in Darwin, 25 per cent in Canberra and 21 per cent nationally.have already started to fall, with Sydney posting the largest decline of 1 per cent in May, and Melbourne 0.7 per cent.Sales volumes are also starting to ease from recent highs, with initial sales estimates over May plummeting by 26.9 per cent compared to the same month last year, data from CoreLogic shows.Properties are now taking longer to sell.
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