What happened
Cotality data shows Australian national average home prices fell 0.9 per cent in August, marking the fifth consecutive monthly decline. Capital city prices fell 1.1 per cent, bringing national dwelling values down 3.6 per cent from their peak. AMP revised its top-to-bottom price decline forecast to 10 per cent nationally and 11 per cent across capital cities.
Why it matters here
A deepening property downturn restricts household wealth effects and borrowing capacity, dampening general economic activity. For real estate investors, declining valuations combined with potential RBA rate increases mean higher leverage risk, though tight rental supply and expanding first-home buyer schemes may prevent a broader market crash.
What to watch
CoreLogic and Cotality September monthly index updates and upcoming RBA cash rate decisions.
Source
amp.com.au