In recent times, we have seen a few house price forecasts discussed on HotCopper. Most notably we have seen SQM's prediction that prices may fall 30% and CBA's 32% house price fall forecast. Both of these were based on the scenario that COVID would create a drag on the AUS economy.
Now the RBA has chimed in by saying that a 40% house price fall in Aus is "plausible". Of course this again depends on whether or not COVID ends up creating a drag on the economy.
There are a lot of things in life that cannot be controlled, and for a property owner, there are things about COVID that cannot be controlled either.I guess this reinforces the importance of diversification to reduce risk (instead of putting all your eggs in one basket - e.g. the real-estate basket).
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"A 40 per cent fall in Australian house prices is an 'extreme but plausible' scenario, according to a Reserve Bank of Australia discussion paper on household debt."
