Property prices to fall 10% in 2023: NAB

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on February 08, 2022 Fact Checked
Property prices to fall 10% in 2023: NAB

NAB predicts that the second half of 2022 will be a 'turning point' for the Australian property market.

In its latest Residential Property Survey, NAB economists forecast that the housing boom may start to lose steam in the second half of this year.

Off the back of forecasting that the cash rate will rise in August 2022, the big bank believes that the housing market will begin to 'flatten' in late 2022.

This will see dwelling prices rise by 3% in 2022, before falling by up to 10% in 2023.

NAB economists said it's important to remember this comes after a 'very sharp run up' over the past year, where property prices increased by a third in some areas.

This is near identical to CommBank forecasts, which were released late last year.

In 2020 the major banks predicted sharp house price falls by up to 30% in a 'worst case scenario'.

Propertyology's property analyst Simon Pressley in late 2021 said to 'ignore' property price predictions as they're often inaccurate.

"Society is fast turning into a bunch of sooks," Mr Pressley told Savings.com.au.

"Australia is fast approaching full unemployment for the first time in decades, wage growth prospects are rising with it, infrastructure investment is a record high, there's lots of industry stimulus, and households have more cash squirrelled away than ever. Why the negativity?" 


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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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