PHOTO: Apartment owners reliant on capital growth are likely to be hit hardest according to Matt Comyn from the Commonwealth Bank
- Bank executives predict house prices will drop in value by 10-12 per cent
- Apartment owners reliant on capital growth are likely to be hit hardest
- The real estate bloodbath was forecast during a parliamentary inquiry on Friday
- Meanwhile homeowners who deferred loans will soon be asked to pay up
Homeowners being warned to brace for a massive fall in house prices as the COVID-19 pandemic continues to wreak havoc on the Australian economy.
Top bank bosses, Matt Comyn from the Commonwealth Bank, and Shayne Elliot from ANZ, told a parliamentary committee on Friday house prices will likely to fall about 10 per cent over the next year.
‘Our base case scenario would see house prices falling somewhere in the order of 10 to 12 per cent,’ Mr Comyn said.
‘Clearly acknowledging there’s a lot of different parts of the market, broadly regional areas and performing better than metropolitan areas.’
Those to feel the brunt of the fall are apartment owners relying on capital growth, Mr Comyn said.
Top bank bosses, Matt Comyn from the Commonwealth Bank, and Shayne Elliot from ANZ, (pictured) told a parliamentary committee on Friday house prices are likely to fall about 10 per cent over the next year
ANZ is forecasting a similar drop in house prices for the financial year, around 10 to 15 per cent.
But the banking executives were hesitant to predict the entire housing market would suffer the same impact.
‘What we expect is there will be a reduction in house prices … but Australia’s not one market,’ ANZ Chief Executive Shayne Elliot said.
This is despite house prices showing positive growth in the past 12 months according to Corelogic figures, reported the Herald Sun.
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