Commonwealth Bank forecasts Australian home prices will fall around 14% peak-to-trough, up from its September forecast of 9%. It projects an 8% decline in 2026 and a further 3% in 2027, with the market stabilizing in the second half of 2027 without a material recovery.
Commonwealth Bank forecasts national Australian dwelling prices will fall around 14% from peak to trough. Brisbane and Perth are each forecast to decline around 18%, compared with September forecasts of around 8% for both cities. National prices are forecast to fall 8% in 2026 and another 3% in 2027, before stabilizing in the second half of 2027 without a material recovery.
The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85% in November, its fifth increase of 2026.
