Is a 40 per cent fall in house prices ‘plausible’? ‘Yes, but don’t worry,’ says RBA

Do you really think house prices could fall by 40%? As much as people may experience mortgage stress and be pressured to sell their property, what does it take for them to sell it at a ‘loss’ or lower than their own expectations?

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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.