AMP Oliver’s Insights – Australian housing Q&A
AMP’s Dr Shane Oliver answers a number of questions in relation to the outlook for the Australian housing market in this edition of Oliver’s Insights.
Dr Oliver summarises the key points as follows:
Australian home prices are likely to fall another 5-10% this year driven by a further 15% or so fall in Sydney & Melbourne. Tight credit, rising supply and falling price expectations are the main negatives.
- Uncertainty around the impact of possible tax changes is likely also impacting investor demand.
The housing downturn will be a significant constraint on Australian growth. We expect the RBA to cut the official cash rate to 1% this year.
You can access a copy of this edition of Oliver’s Insights here: