A top market analyst said house prices in Sydney and Melbourne could fall by as much as 40 percent.
Prices in Sydney and Melbourne can fall by as much as 40 percent, according to a top market analyst, and those who use ways beyond their means to enjoy their lives will soon find themselves in crisis, the Daily Mail reported.
Home prices in Sydney and Melbourne began to fall as banks tightened lending policies and ended low-interest loans.
Over the past 10 years, many first-time home buyers have relied on generous bank loans to buy their homes. But now, investors who still buy more than they can afford will trigger a collapse in housing prices.
Christopher (Louis Christopher), a top property analyst, said Sydney and Melbourne were long overdue for a big "correction" of house prices.
Both Sydney and Melbourne are overvalued at more than 40 percent, according to data available. He believes the housing markets in Sydney and Melbourne face a different crisis than other cities. But larger price corrections in both cities could damage the wider economy.
Data scientist Norse (Martin North) agrees with Christopher. He said Australia was facing a "debt bomb" crisis, similar to what happened in the United States in 2006, which led to a market collapse and a global financial crisis. And Australians are in debt crisis.
Some analysts worry that house prices in Sydney and Melbourne will plummet by nearly 50 percent compared with previous asking prices, while some optimistic analysts believe the decline should be between 10 percent and 15 percent.
Luttit (Jamieson Louttit), a prominent asset liquidator, recommends that homeowners who cannot continue to pay for their prices should sell their homes while they are still in a position to sell their homes in the leave housing market.
