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RBA tips property prices to drop 20 per cent amid interest rate hikes

Documents reveal Australia’s central bank has some dire forecasts for property prices, as mortgage holders are already struggling to pay their bills.

The Reserve Bank of Australia (RBA) predicts that property prices will plunge by a whopping 20 per cent thanks to back-to-back interest rate rises.

By 2024, house and unit values are expected to lose a fifth of their value – all but wiping out the unprecedented gains made in the 2021 property boom.

That’s according to freedom of information documents from the RBA obtained by Sydney Morning Herald.

It comes as Australia has endured interest rate hikes for the past six consecutive months, seeing the cast rate rise from a record low of 0.1 per cent to 2.6 per cent since May.

In the FOI documents, an unnamed RBA economist wrote: “We’re now anticipating housing prices to decline over the next few years.

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