Australia’s House Prices Set to Plunge 15% in 2023, Jarden Says
- Jarden sees 20-25% peak-to-trough decline vs 15-20% previously
- Firm estimates RBA’s peak rate at 4.1% in May from 3.6% before
Listings at a real estate agency in Sydney.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Australian home prices will likely tumble another 15% this year as part of the largest property decline on record, Jarden Securities Ltd. said, predicting the Reserve Bank will increase interest rates to 4.1% by May.
The yearlong housing downturn had been losing momentum of late, driven by hopes of a pause in the RBA’s tightening cycle, economists Carlos Cacho and Anthony Malouf said. But the RBA’s surprisingly hawkish turn Tuesday when it hiked to 3.35% and signaled more to come “risks upending this budding optimism,” they said.