ANZ is also predicting Sydney prices to fall by a further 6 per cent next year, for a total of 20 per cent drop peak-to-trough, but are set to rise by 6 per cent in 2024 as interest rates start to decline.
Sydney house prices are set to fall as much as 14 per cent this year alone as the sharp rise in interest rates in coming months slashes into borrowing capacity, according to an updated ANZ forecast.by a further 6 per cent next year, for a total of 20 per cent drop peak-to-trough. Prices are likely to rise by 6 per cent in 2024 as interest rates start to decline.
Felicity Emmett, ANZ research senior economist, said the steeper increase in mortgage rates over the next few months, on top of what has already occurred, will weigh heavily on house prices.“Our expectation of a cash rate of 3.35 per cent by the end of 2022 equates with variable mortgage rates reaching just under 6 per cent, which will reduce borrowing capacity by nearly 30 per cent,” Ms Emmett said.
Melbourne house prices are expected to drop by 11 per cent this year, Hobart by 9 per cent, Canberra by 7 per cent and nationwide by 8 per cent. Meanwhile, Adelaide is forecast to rise by 4 per cent, and 1 per cent each for Perth and Brisbane.
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