house price forecast

Westpac soften house price forecast, now predict five per cent peak to trough declines

PHOTO: Westpac

Westpac are the latest bank to soften their house price decline forecast amid a resilient real estate market over COVID-19.

They had been predicting a 10 per cent fall in prices nationally from the peak in April to June 2021, with increase of around four per cent per annum over the following two years.

They expected Melbourne to be hit the worst, down -12 per cent, Sydney back -10 per cent and Brisbane and Adelaide -8 per cent.

But now, with real estate seemingly weathering the COVID-19 storm, Westpac forecast just five per cent declines between April and June next year.

There have already been -2.3 per cent declines nationally, according to CoreLogic’s data.

No better news for locked-down Melbourne, whose prices are still predicted to be down -12 per cent.

Source: Westpac