The current downturn is now one of the largest on record, only surpassed by a handful of periods in the late 1800s and the first half of the 20th century.
It also rivals or has exceeded some of the declines seen in overseas markets during the GFC.
The family home is the largest store of wealth for most Australian families.
Coupled with weak household incomes growth, there’s no shortage of economists out there who believe it will weigh on household spending, potentially dragging on economic growth and inflation and putting upward pressure on unemployment.
That explains why so many believe the RBA will cut rates again.
No matter which way you look at it – be it from a historical perspective locally or compared with declines seen overseas during the global financial crisis — there’s now little doubt that the downturn in Australian home prices is getting pretty big.
It’s now one of the largest on record in Australia, only surpassed by a handful of periods in the late 1800s and the first half of the 20th century.
