
Falling Sydney and Melbourne home prices – is this the crash? What about other cities and the impact on the economy?
Key points:
- Property prices in Sydney and Melbourne likely have more downside, but a crash is unlikely in the absence of much higher mortgage rates, much higher supply and a long continuation of recent high construction activity.
- Other cities will perform better.
- Property investors should remain wary of Sydney and Melbourne and focus on laggard or higher yielding markets.