Australian Housing market May Crash

Australia has one of the highest levels of household debt in the world. But this is nothing new. Australians have carried more household debt than Americans for the past 20 years. However, with the advent of the coronavirus pandemic and more than five million people being supported by the government’s JobKeeper or JobSeeker programs, there are signs that the Aussie property market may be following the same trajectory as the Americans did during the GFC. According to PEXA, an E-conveyancing firm made up by the various privatised land registry offices, from the start of the year until the end of September, housing prices in NSW are down 9 per cent and in Victoria, prices were down a whopping 14 per cent. Commercial property in NSW also fared extremely poorly, with prices down 14 per cent in the first nine months of the year. Price drops of up to 14 per cent paints a pretty concerning picture for the nation’s property market.