Banks forecast 10% property drop: Is the Australian market crashing?

Major Australian banks are forecasting a 10% decline in property prices, according to analysis by Pete Wargent and Chris Bates on the Australian Property Podcast. The deepening housing market downturn has implications for buyers, sellers, investors and first-home buyers heading into 2026.

Wargent and Bates examined the forces behind the slide, including rising interest rates and tighter lending conditions. They discussed how different segments of the market are being affected. Sellers face lower prices and longer selling times. Buyers, particularly first-home buyers, may find more affordable entry points but also face higher borrowing costs. Investors are weighing the impact on rental yields and capital growth.