Australia’s Housing Downturn Squeezes Household Balance Sheets

What changed

Australia’s housing market has entered its sharpest downturn in years since interest rates began rising in February. For most homeowners, the main observed effect so far has been a modest decline in property values.

Why it matters

That makes the downturn a slow squeeze on household balance sheets rather than a single dramatic shock. Homeowners still hold the same properties, but those assets are worth less than before, with the size and duration of the decline still unquantified.