$211k ‘correction’: Big bank’s shock home price prediction

Homeowners across the country are being prepped to brace for a correction, amid new CBA forecasts. Picture: NCA NewsWire / Max Mason-Hubers Millions of homeowners are being warned to brace for a brutal property correction, with falls predicted to wipe up to $211,000 off medians, knocking two capital cities back under $1m. Latest Commonwealth Bank forecasts have dwelling values dropping 9 per cent nationwide, with capital cities to wear an even harsher 10 per cent average hit. Such a crash, Canstar calculates, would slice between $89,000 and $211,000 off capital city medians. Dwelling prices are expected to fall further this year. Source: CBA This comes as a toxic double whammy of three RBA rate rises already in 2026 – with at least one more predicted before Christmas – paired with federal property tax changes trigger a widespread contagion that’s seen prices drop across a staggering 93 per cent of capital city suburbs over winter. That’s almost double the suburbs that saw prices fall in autumn when RBA’s rate hikes began. CommBank Research economists drastically downgraded their property outlook on the first day of Spring selling season, warning a “deeper correction” in home values...