House Prices to fall 14 per cent in 2023/2024
House prices to fall 14 per cent over 2023 and 2024: Westpac predicts a huge drop in property prices before the end of 2024.
Domain’s Quarterly House Price report has stated that during 2021, every suburb in Sydney recorded an annual house growth, soaring by up to as much as $750,000.
Economists at Westpac have warned of a huge drop – of up to 14 per cent – in property prices before the end of 2024 as the Reserve Bank of Australia (RBA) are tipped to lift interest rates from August 2022, due to strong inflation figures. Economists believe interest rates will continue to peak until they hit 1.75 per cent in March 2024.
Before this, however, property prices are expected to keep going up another two per cent in 2022 before an anticipated correction phase which will see significant falls in 2023/2024.
As the RBA starts normalising interest rates, experts are warning that the housing sector will suffer “collateral damage”, being “highly sensitive” to rate changes.
“With affordability already stretched in many markets, rate rises will have a direct impact on the borrowing capacity of buyers and their ability and willingness to sustain high prices,” they said.