Revealed: The Sydney suburbs that have dropped OUT of the $1million club - as economist predicts whopping 14.5 per cent fall in property prices
- Sydney's housing market dealt hard blow as 12 suburbs drop below $1million
- Australia's top economists are warning the housing market will fall even further
- Values plunged 15 per cent in some suburbs, and could damage the economy
The median house price in a dozen Sydney suburbs has fallen below $1million in another blow to an increasingly shaky property market.
Australia's top economists say the crisis is one of the steepest property downturns in decades, and are warning the market is set to fall further.
As values plunged up to 15 per cent in some suburbs, there are growing concerns about how damaging the decline could be to the economy.
Sydney's increasingly shaky housing market has been dealt another hard blow as a dozen suburbs have dropped out of the million-dollar house price club
As values plunged up to 15 per cent in some suburbs, there are growing concerns about how damaging the decline could be to the economy (Revesby pictured)
Most areas that fell below the one-million dollar line are located in the city's south and the Canterbury-Bankstown area, including Roselands, Sutherland and Kellyville Ridge.
Other suburbs among the twelve booted out of the million-dollar house price club include Glenwood, Padstow, Revesby, Panania, Northmead and Riverwood.
The Sydney Morning Herald reported that eonomists remain concerned about how households will react with many predicting a further 7.6 per cent drop this year.
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Across the 18 economists surveyed, an average prediction for Melbourne is a 7.2 per cent drop in prices.
In January alone, Sydney endured a 1.4 per cent fall thoughout the month and a 1.7 per cent drop in Melbourne.
The most pessimistic economists are predicting a further 14.5 per cent drop in Sydney's housing prices this financial year, with Melbourne suffering a predicted 9.7 per cent drop.
Sydney's 12.3 per cent price fall since the mid-2017 peak was 'the sharpest downturn in more than two decades', with the last being the 1982 recession.
Other suburbs among the twelve booted out of the million-dollar house price club include Glenwood, Padstow, Revesby, Panania, Northmead (pictured) and Riverwood
Melbourne has suffered a 10.6 per cent slump throughout the year.
Prices are falling at an alarming rate, with the most rapid plunge occurring over the past few months, as the number of properties on the market climb.
Industry Super's top economist Stephen Anthony believes households are going to suffer if prices continue to fall.
'We are likely to see houshold consumption fall to or below two per cent growth rates per year unless households are somehow able to take on even more debt,' Mr Anthony said.
'That seems unlikely given current bank lending practices.'
AMP Capital chief economist Shane Oliver believes the overall economy is going to suffer as people are predicted to offload properties before prices drop further.
However, University of Melbourne's Neville Norman remains optimistic, with predictions Sydney will see a 2.5 per cent rise and Melbourne a 1.5 per cent rise this year.
