The latest data suggests that Sydney’s house price crash has begun. Given the RBA and median economist expects the cash rate to rise to around 2.5% (i.e. 240 basis points of tightening), this would imply a full blown house price crash for the nation, led by its most expensive market of Sydney. My view is that the RBA will be stopped-out well short of the 2.5% cash rate forecast, thereby limiting the damage. But Australia will still likely experience the biggest house price unwind in generations, with Sydney bearing the brunt.

Source: The Guardian June 02, 2022 22:49 UTC