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news.com.au 23 Nov, 2021 09:45 am

Sydney house prices: CBA’s head of Australian economics predicts house price drop for 2023

Sydney house prices: CBA’s head of Australian economics predicts house price drop for 2023
The Commonwealth Bank has forecast a massive 10 per cent drop in Australia’s house prices in 2023 after a startling period of growth that has left new buyers feeling priced out of the market.

” The Commonwealth Bank has forecast a massive 10 per cent drop in Australia’s house prices in 2023 after a startling period of growth that has left new buyers feeling priced out of the market.Analysis by Moody’s Investors Service found that a household with an annual income of $135,000 will spend more than 45 per cent of its money servicing its new mortgage, a dramatic increase from February where such a household only (relatively speaking) needed 36 per cent of its income, While house prices are expected to continue to rise through 2022, CBA’s head of Australian economics Gareth Aird believes interest rates will help settle the market in a few years’ time.’ The Commonwealth Bank has forecast a massive 10 per cent drop in Australia’s house prices in 2023 “As home prices move higher, affordability becomes stretched.” Mr Aird said the international border reopening could see a decline in house prices compared to apartment prices.

“As such, we expect house prices to decline by a little more than apartment prices over 2023,” he said.“We expect an orderly correction in home prices of around 10 per cent in 2023 as the RBA takes the cash rate to 1.

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