House prices to fall by as much as 60 per cent, US expert says
Aussie home loan customers could see house prices fall by as much as 60 per cent in the next five years, according to a leading US-based real estate expert.
Speaking to news.com.au, Jordan Wirsz said the Australian economy will take a turn for the worst and the average value of properties will tumble.
He suggested that a "sluggish recovery" would not be seen until 2016.
"The market has slowed substantially but residential prices are likely to fall up to 60 per cent, possibly even more, within five years," he was reported as saying.
However, Mr Wirsz's predictions have been challenged by bankers in Australia, with HSBC's chief economist Paul Bloxham stating that strong demand for Australian property, coupled with low interest rates, will protect the housing market against any global economic turmoil.
Yesterday (January 19th), global macroeconomics manager at the World Bank Andrew Burns told the Herald Sun that Australia should not feel that it will be unaffected by impending global economic downturns.
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