Yellow Brick Road boss predicts $200,000 house crash and negative equity crisis
Mark Bouris forecasts unemployment-led recession with house prices crashing $200,000 in Sydney, Brisbane and Perth.
Yellow Brick Road chairman Mark Bouris is warning recent first-home buyers they risk owing their bank more than their home is worth if a recession forces a sale. The Commonwealth Bank forecasts the sharpest house price falls on record: Sydney down $257,000, Brisbane down $221,884, Perth down $195,751, with smaller falls in Adelaide and Melbourne.
Bouris predicts unemployment will climb above 6 per cent for the first time since early 2021. Falling stamp duty and reduced government spending would then force state governments to cut infrastructure projects.
Reserve Bank modelling shows if home prices fall 20 per cent, negative equity could jump from less than 1 per cent of borrowers today to 5 per cent. Buyers who put down 5 per cent deposits face the highest risk.
- $257,000
- Sydney price fall
- Above 6 per cent
- Unemployment forecast
- Under 1 per cent to 5 per cent
- Negative equity rise
- 5 per cent deposits
- Deposit risk level
Why it mattersHomebuyers who entered the market in recent years could be trapped with mortgages worth more than their homes.
AustraliaAustralian first-home buyers, especially those with small deposits, face potential negative equity in the forecast downturn.
✓ Claims checked against the source. checked 2 h ago
