Rising unemployment could see house prices nosedive
Mounting job losses caused by the coronavirus pandemic would cause house prices to plummet according to one of Australia’s most respected economists.
Dr Shane Oliver, the chief economist with AMP Capital, tells Brooke Corte unemployment figures are about to get “pretty bad,”
“I’m thinking north of 10 per cent, it could even go as high as 15 per cent,” he said.
Under a best-case scenario, where unemployment peaks under 10 per cent, Dr Oliver sees house prices falling by roughly five per cent.
However, under a worst-case scenario, where unemployment skyrockets into double digits, Dr Oliver predicts house prices could nosedive.
“Probably falling around 20 per cent, give or take a little bit around that,
“Rising unemployment and very high household debt is a bad combination, so that is not very good.”
Click PLAY to hear Dr Shane Oliver with Brooke Corte.