Major banks reveals when home prices will start growing again

A major bank has forecast property prices could plunge by up to 15 per cent over this year and next as the current market downturn intensifies across Australia’s largest capital cities. The modelling from ANZ bank indicated the falls would come off the back of higher interest rates, stretched affordability and federal government property tax changes included in the May budget. In a report released Tuesday, ANZ economists Madeline Dunk and Adam Boyton said the market was slowing quicker than expected. ANZ forecast capital city prices would fall by 4.3 per cent this calendar year and by 3.4 per cent in 2027. 2027 was expected to mark the trough in the cycle, with prices recovering over 2028. Auction clearance rates have been under 50 per cent for most of the last 10 weeks. Picture: Sarah Wilson The cumulative falls in prices over the two-year period would be 10.6 per cent, measured from peak to trough, ANZ revealed. Sydney prices were forecast to fall by a much larger margin, declining by an average of 14.5 per cent from its peak earlier this year. Melbourne prices were expected to fall by an average of 12.8 per cent from their peak. Both cities were expected to bounce back in 2028 w...