Property owners have been warned by the Reserve Bank of Australia that home values are forecasted to plummet by 20 per cent in two years.
The RBA released secret documents that forecast that the Australian property market could take the biggest hit since the 80s.
The dire forecast is down to the big rise in interest rates to try and stem inflation, with the cash rate expected to surpass 3 per cent by Christmas.
Prices in Sydney and Melbourne are likely to fall by 1.5 per cent a month through the rest of 2022.
So will this give young folk eager to join the homeowners club a chance? Or will it be more damaging to those who already own home/s?
“We’re now anticipating housing prices to decline over the next few years. That reflects the ongoing slowing in momentum in the market and the steepening of expectations for the future path of interest rates,” – RBA economist.