Westpac now expects house prices to drop 15%

Michael Gordon: mortgage rates already above expected levels (Image: supplied)

Fri, 06 May 2022

Westpac Bank expects house prices to decline by 15% over the next two years due to rising mortgage rates.Acting chief economist Michael Gordon said with mortgage rates already having risen beyond where the bank expected them to peak this cycle, the market is now "overcooking" in terms of the official cash rate outlook.While he expects that to have an impact on forecast house prices, Gordon doesn't expect "distressed sales" to become a market feature, as property owners "generally won't sell at a loss if they don...

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