In addition, we have applied some downward judgement to our housing price profile to reflect downward momentum in the housing market. This estimated a 20% peak-to-trough nominal decline in Australian dwelling values:We’ve constructed a downside housing price scenario within the Saunders Tulip framework by assuming people become pessimistic about the outlook for housing prices. In this scenario, housing prices decline by 20 per cent peak-to-trough by the end of 2024. Chris Joye has done an excellent job here parsing the RBA’s Australian house price forecasts. The key takeaway is that Australian house prices are facing a record decline that will likely smash prior episodes.

Source: Stuff October 23, 2022 22:28 UTC