‘Correction’: The banks are predicting the biggest housing crash in decades. But will they be right?

The banks think house prices are about to plunge, but other experts disagree. Photo: Getty

There has been a big change in the outlook for house prices in the past week – two of Australia’s major banks are now predicting the biggest crash in decades.

After two years of rapidly rising prices, most home owners have gained more wealth from their property than their jobs since COVID-19 started, with house prices skyrocketing more than 25 per cent in 2021 alone.