Shock as every Aussie household to lose $120k

Home prices have already fallen by close to 5 per cent in Sydney and Melbourne as auction demand drops. Picture: Monique Harmer Australia’s real estate downturn – shaping up to be the largest in decades – will blow a circa $120,000 hole in the wealth of property owning households over the next year, new modelling shows. The modelling analysed how a 10.6 per cent peak-to-trough fall in capital city prices predicted by ANZ would impact households, revealing it would drive a substantial erosion in general wealth. ANZ has predicted the fall would occur until late 2027 and would be followed by an eventual recovery in property prices. A national fall of this magnitude has not been seen since the early 1980s and would strip the average owning household’s property wealth from about $1.14m to $1.02m, a loss of about $120,000. MORE: Boomers smashed by new Aus tax, others pay less Reserve Bank Governor Michelle Bullock is under pressure to bring inflation under control. Picture: John Appleyard Wealth losses would total close to $1.3 billion across property owning households, according to the HomeLoanRates.com.au analysis of the ANZ projections, along with ABS wealth and dwelling data. Exposur...