Westpac Warns of 10.9% Home Price Drop as Australian Mortgage Applications Fall 15%
Updated
Updated · Reuters · Nov 1
Westpac Warns of 10.9% Home Price Drop as Australian Mortgage Applications Fall 15%
3 articles · Updated · Reuters · Nov 1
Summary
Westpac said Australia’s housing downturn is set to deepen, with prospective buyers delaying purchases and the bank forecasting a 10.9% fall in home prices through March 2027.
A 15% year-on-year drop in September-quarter mortgage applications reflects expectations of further price declines and another Reserve Bank rate hike, which is widely seen lifting rates to 4.85% this week.
National home prices already fell 1.2% in October from September, while capital-city values have dropped 8.1% in seven months at their fastest pace in 40 years, according to Cotality.
Westpac’s annual profit excluding notable items was A$6.99 billion, in line with forecasts, but higher rates and volatility pushed credit impairment charges up 104% to A$864 million.