Economists predict house prices could fall 10-15 per cent from their peak, with a trough not expected until the second half of 2027, according to a Morgan Stanley note. Prices have already dropped 5.2 per cent since March, and Morgan Stanley says the slide could be only one-third complete, with the Reserve Bank's four rate rises in 2026 above expectations. The bank says the downturn would be Australia's largest nominal housing decline in over 40 years, and it does not expect the five indicators of a bottom to turn before mid-2027. Because construction accounts for about nine per cent of employment, unemployment could rise to 5.1 per cent. Construction costs rose 3.2 per cent in the 12 months to September, while Australia has completed 355,817 dwellings in the first two years of a five-year goal of 1.2 million homes, about 124,000 behind schedule.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on katherinetimes.com.au ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AUD/USD
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 0.70040 |
| Change that session | +0.35% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Pending home sales sink to record low , Redfin data shows
- Opinion: Prop. 37 could be a bonanza for home builders. But what about home buyers? TBD.
The author argues that Proposition 37, a California ballot measure offering down payment assistance of up to 17% of the purchase price for new homes, may benefit home builders more than buyers. Eligible households earn less than 200% of area median income, and the author cites a family of four earning up to $166,800 in Madera County or $375,800 in Santa Clara County as falling within the range. Assistance would be repaid through a fixed-rate second mortgage, and its interest rate could exceed the already high first-mortgage rates, which hover around 7%. The author warns that the financing terms are unclear and that the 'qualified builder option' could boost demand for new homes without making them meaningfully more affordable.
- What fall listing data reveals about where the housing market is headed this winter
- What fall listing data reveals about where the housing market is headed this winter
- What fall listing data reveals about where the housing market is headed this winter
- Real - REMAX CEO says AI will take over housing systems
Real - REMAX CEO Tamir Poleg told agents at the RISE conference in Las Vegas to prepare for several more years of slow existing home sales, while arguing the Real-REMAX merger and AI investment could give them a competitive edge. He predicted U.S. home prices could decline and was skeptical that mortgage rates would soon return to 4.5%. He said current foreclosure trends differ from 2008, since 40% of U.S. homeowners own their homes outright and many others have built up substantial equity. According to 2026 RealTrends Verified data, The Real Brokerage ranked No. 5 with 131,047 transaction sides and REMAX ranked sixth with 378,961. Poleg also argued that listing data currently benefits platforms like Zillow, and that the combined company could gain more control over it.
Related markets
Latest news
- Why Isn't IBM's Stock Bouncing Back After Strong Earnings Results?
IBM shares fell about 25% in July, their worst day in 115 years, after the company said customers had shifted spending to memory and storage products and delayed major contracts. The third-quarter report on October 21 showed revenue up 5% to $17.1 billion, operating earnings per share up 11% to $2.95, and software growth of 9% at constant currency. The author estimates organic software growth was closer to 4% after excluding the roughly $11 billion Confluent acquisition, and that meeting the roughly $32 billion full-year software target implies fourth-quarter software growth of about 4%. Debt rose to $63.8 billion after $11.4 billion of acquisitions this year, though the dividend appears well covered by free cash flow. The author still sees IBM as a long-term holding for its enterprise AI position and customer base, despite the market's muted reaction.
- IBM Is America’s Worst Big Tech Company
The article argues that IBM, which CEO Arvind Krishna credits with disciplined execution and transformative AI, has missed most major tech shifts over the past fifty years. Quarterly revenue rose 5% to $17.1 billion and net income reached $2.2 billion, up from $1.7 billion a year earlier. The author compares these figures with Nvidia's $60 billion net income last quarter and Microsoft's $90 billion revenue in its most recent quarter. IBM's market cap is $237 billion versus Microsoft's $4 trillion, and the company, the fourth-largest in America in 1993, ranked 66th on the Fortune 500 last year.
- Tesla's Profit Drops 43% as Musk Starts Building Robots and Plans to Sell Driverless Cabs
Tesla's third-quarter net income fell 43% to $787 million from a year earlier, as revenue held flat at $28.05 billion, operating profit dropped 56% to $718 million, and deliveries fell about 2%. Research spending rose 69% to $2.76 billion and capital expenditures more than doubled to $4.73 billion, aimed at humanoid robots and driverless taxis. Tesla has begun producing Optimus robots in Fremont, California, where Musk targets 20,000 a week but says that will take at least a year, with outside deliveries around the end of 2027. Tesla aims to get Cybercabs to customers by the end of 2026, though every one built so far goes to its own robotaxi fleet, no buyer or price has been named, and a federal safety audit is open. Musk also said the Tesla and SpaceX boards have formed committees to study a possible combination, but no terms have been agreed.
- Tesla's Profit Drops 43% as Musk Starts Building Robots and Plans to Sell Driverless Cabs
Tesla's third-quarter net income fell 43% to $787 million from a year earlier, as revenue held flat at $28.05 billion, operating profit dropped 56% to $718 million, and deliveries fell about 2%. Research spending rose 69% to $2.76 billion and capital expenditures more than doubled to $4.73 billion, aimed at humanoid robots and driverless taxis. Tesla has begun producing Optimus robots in Fremont, California, where Musk targets 20,000 a week but says that will take at least a year, with outside deliveries around the end of 2027. Tesla aims to get Cybercabs to customers by the end of 2026, though every one built so far goes to its own robotaxi fleet, no buyer or price has been named, and a federal safety audit is open. Musk also said the Tesla and SpaceX boards have formed committees to study a possible combination, but no terms have been agreed.
- Why Micron Stock Is Falling Hard Today
Shares of Micron Technology (MU) fell about 5.2% by 1:33 p.m. ET as investors worried AI spending could slow. Concerns grew after Nvidia's CEO said capital is scarce for further growth in the AI cloud market, and Meta's shares slid despite beating estimates because it plans $135 billion to $145 billion in capital expenditures this year. Since Micron supplies memory and storage for AI data centers, fears of overspending weighed on its stock. Economic pressure added to the sell-off: the Federal Reserve recently raised rates and hinted at more, oil prices rose on the U.S. war with Iran, and inflation was reported rising faster than expected.
- Taiwan Semiconductor and ASML Are Incredible, but 1 of These Monopoly Chip Stocks Is Far Safer.
The article argues that Taiwan Semiconductor (TSM) and ASML are both near-monopolies, but Taiwan Semiconductor is the safer investment. ASML is the only maker of extreme ultraviolet (EUV) lithography machines, while Taiwan Semiconductor accounted for about 72.5% of chip fabrication revenue in Q2, a scale no rival matches. The author warns that ASML's business depends on chipmakers expanding capacity for the AI build-out, which may slow once that wave ends. ASML also trades at a sizable premium to Taiwan Semiconductor on both 2026 and 2027 earnings estimates.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.