Dr Shane Oliver – Head of Investment Strategy and Chief Economist
> The Australian housing market is at risk from the COVID-19 recession Australia has now entered.
> A relatively short recession that sees unemployment rise to around 7.5% would likely only set prices back around 5% or so after which prices would bounce back.
> But a deeper recession with say 10% unemployment risks tripping up the underlying vulnerability of the housing market around high prices and high debt levels. This could see a 20% fall in prices.
> This is not our base case, but it highlights the need for the Government & the RBA to minimise the fallout from COVID-19 shutdowns in terms of businesses and jobs.
The full article can be found here.
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