Tuesday 16 August 2022 06:04 AM ANZ Bank tips a 20 PER CENT plunge in house prices trends now
The ANZ bank is now tipping house prices in Australia's biggest cities will fall by 20 per cent by the end of 2023 as interest rates keep on rising - wiping off $263,000 from a typical home.
Sydney and Melbourne are set to be the worst-affected property markets with borrowers enduring the steepest Reserve Bank interest rate rises in almost three decades.
They were far from the only markets at risk, with Hobart, Canberra and Darwin likewise forecast to fall in 2022.
Meanwhile, prices are expected to increase in Brisbane, Adelaide and Perth this year but fall in 2023.
ANZ senior economists Felicity Emmett and Adelaide Timbrell are expecting overall capital city house prices to fall by eight per cent in 2022 followed by a nine per cent fall in 2023 - or 17 per cent over two years.
'A steep increase in mortgage rates between May and the end of this year will weigh heavily on house prices,' they said.
The ANZ bank is now tipping house prices in Australia's biggest cities will fall by 20 per cent by the end of 2023 as interest rates keep on rising - wiping off $263,000 from a typical home (pictured is a house in Melbourne)
'The biggest factor driving prices lower is reduced borrowing capacity, not a rise in forced sales.'
Sydney was expected to do even worse, with a 14 per cent drop in 2022 followed by a 6 per cent decline in 2023, equating to a loss of 20 per cent over two years.
Should this prediction materialise Sydney's median house price would fall by $192,496 this year - from the $1,374,970 level of December 2021 - to $1,182,474, based on CoreLogic data.
Next year, the mid-point house price would drop by another $70,948 to $1,111,526, with
