Graph shows Aussie house price ‘collapse’

Australia’s property prices have continued to plummet as experts predict the mass downturn is still far from over.

New figures revealed selling prices fell across all capital cities in August, which marks a new drop from the market’s April peak.

This was felt hardest in Sydney, Melbourne and Brisbane but more modest declines were still recorded in Adelaide and Perth.

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An update from the Commonwealth Bank concluded the market’s major price slide would have the same impact but happen fast than first predicted.

“We did not change our expectation that national dwelling prices will fall from peak to trough,” the update read.

“But we now see that trough reached sooner given prices are falling at a slightly quicker pace than we anticipated.”

“Our expectation that the RBA cuts the cash rate by 50bp in H2 2023 sees home prices rise modestly on our central scenario over late 2023.”

CBA went on to say the market’s current trajectory “can only be described as a collapse in prices”.

However, the bank said if the RBA takes the cash rate lower in H2 2023 as per their forecast then home prices are likely to rise.

Notably, Sydney and Melbourne’s housing markets to be the most responsive initially to RBA rate cuts given they were the first to enter the correction phase.

New ABS data released on Thursday the value of new loan commitments fell 8.5 per cent for housing in July 2022.

For owner-occupier housing fell 1.9 per cent but was 13.0 per cent higher compared to a year ago. It was at its second highest level following the record high reached in June.

For investor housing rose 0.3 per cent but was 3.1 per cent lower compared to a year ago.