Double-digit house price falls ahead, says NAB

first_img Home ownership predicted to plummet Confidence took a heavy hit from coronavirus-linked measures that collapsed jobs and activity.“NAB believes dwelling prices will likely see significant falls over the next 12-18 months, with house prices across the capital cities to fall by 10-15 per cent,” the NAB Quarterly Australian Residential Property Survey Q1 2020 said.That was because the trend in confidence had moderated, it said, “perhaps reflecting early fears regarding the coronavirus impact on housing markets”.“While both the depth and duration of the downturn underway remain uncertain – and will depend on the evolution of the spread of COVID-19 – we expect a sharp fall in economic activity in the near-term, followed by a rebound in growth but slower recovery in activity levels.” Open homes, auctions push after NSW lifts ban More from newsCOVID-19 renovation boom: How much Aussies are spending to give their houses a facelift during the pandemic3 days agoWhizzkid buys almost one property a month during COVID-197 days agoVideo Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p216p216p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenHow much do I need to retire?00:58 MORE: How some men survived lockdown The National Australia Bank has predicted double digit falls in house prices across the capitals.One of the Big Four banks, NAB, has put a figure and timeline on how far house prices could fall off COVID-19, predicting ‘significant’ double-digit impact.The prediction came despite NAB’s Residential Property Index for the March quarter – released this morning – hitting a survey high of +38 to stay well above the +12 average. It said the survey was done before more restrictive social isolation measures came into force – between February 25 and March 23 – and therefore was “unlikely to reflect sharp falls in consumer and business confidence, economic activity and employment evident since then, which is likely to impact house prices moving forward”.NAB expects unemployment to rise to 11.7 per cent by June but recover to 7.3 per cent by the end of next year.“While interest rates are very low and will act to support prices, rising unemployment, slower wage growth and weak confidence will weigh on prices. Also, while we do not see a fundamental oversupply in the market (with construction continuing to decline), a slowing in migration will see demand for housing soften somewhat.” FOLLOW SOPHIE FOSTER ON FACEBOOKlast_img

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