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

Property Podcast

Here's what Chris and I discussed on the podcast this week:

"The conversation covers the latest CoreLogic data showing capital city values down 1.3% in the June quarter, auction clearance rates slipping below 50%, and a drop in sales volumes.  

Pete shares his on-the-ground view that many prices are already 10-15% off peak levels but appear to have levelled off in recent weeks, with few genuine fire sales thanks to strong employment.

Pete and Chris examine the Federal Budget’s limited impact on home ownership rates, the SMSF lending ban wiping out potential gains from new housing initiatives, evaporating new home sales, and falling unit approvals. 

They discuss shifting sentiment in key markets — including Brisbane homeowners pulling sales and the forecast that Brisbane could soon overtake Sydney as the most expensive unit market — alongside inflation easing and banks revising 2026 price forecasts downward (with some predicting 5-10% national falls).

Main stories include “Budget buyer’s remorse” — why first-home buyer applications have slowed despite policy support — and a detailed look at what a further house price fall would actually mean for Australians. 

Drawing on 30 years of history analysed by ABC News Business, they highlight that past corrections have been relatively shallow (average -2.9%) while subsequent recoveries have been strong (+32% on average). 

They explore risks of negative equity for recent buyers, the chance of a larger correction, Sydney’s role as the market canary, and why fundamentals (jobs, rates, yields) still matter more than headlines.

The episode finishes with two practical listener questions: Chris shares the biggest structuring lessons from scaling Alcove and advising clients — particularly the one principle that separates successful long-term investors from those who get stuck or over-leveraged.

And Pete offers advice on how regular buyers can realistically access off-market and pre-market deals without a buyer’s agent.

Along the way, Pete and Chris offer strategic advice for buyers and sellers in nervous conditions, discuss wealth transfer opportunities, refinancing dynamics, and the importance of thinking long-term when sentiment shifts fast."

Tune in here (or click on the image below):

You can also watch the YouTube version here:

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