Aussie house prices are set to fall

• Australian house prices are set to fall … and it’s all about supply and demand.

There is not much doubt about that, but the big questions are how substantial the falls will be and how long the price declines will last?

The supply of dwellings is increasing in line with an extraordinary construction boom. Australia is building dwellings at a record level. At the time, underlying demand for dwellings is falling as population growth has slowed to its weakest pace in close to a decade.

Also read: Can banks survive an Aussie house price crash?

Let’s look at the dynamics.

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