RBA predicts a potential 40 per cent drop in house prices – NEWS.com.au

New research shows what will happen if house prices fall. The news is bad. It turns out Australia is so puffed up on housing wealth that if house prices fall they drag down a huge section of our economy with them.The Reserve Bank of Australia put out new research on Tuesday with some dire warnings. RBA investigated the effect of a 40 per cent fall in house prices – a fall they described as “extreme but plausible”. That would mean a $500,000 home falls to $300,000 and a $1 million home falls to $…

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