Big bank predicts worst housing crash on record

CBA predicts Brisbane will see the steepest fall in housing prices. One of Australia’s biggest bank has issued a brutal warning of the worst housing crash on record – which would see shock six-digit price falls across the capitals. The Commonwealth Bank’s latest economics update, released Tuesday, flagged an unprecedented downgrade to the housing outlook – the deepest crash in 45 years – seeing median cuts come in as high as $199,000 in one capital alone. It warned a faster and broader correction than CBA expected in its September update forced the move – triggering brutal downgrades across all major mainland capitals off a 14 per cent peak-to-trough national collapse. Perth has already exceeded CBA’s previous peak‑to‑trough forecasts prompting the revision. Capital cities are expected to bear the brunt of the falls with the combined five-capital city index set to tumble around 15 per cent before bottoming in late 2027. If realised, the 14 per cent national correction would eclipse the 8.6 per cent slump seen during the 2017–19 banking royal commission to become the steepest drop in the 45-year history of the CBA’s monthly index series. CBA senior economist Trent Saunders confirmed...