NAB Revises Down Housing Price Forecast Amidst Market Downturn

National Australia Bank has become more pessimistic about the housing market, forecasting an 8% fall in capital city dwelling prices for 2026, revising its previous 6% decline prediction. This downturn is expected to see prices drop around 11% from their peak before stabilising in the second quarter of 2027, influenced by interest rate hikes and recent tax changes.

For Melbourne's western growth corridor, this forecast suggests continued price adjustments, potentially creating opportunities for first-home buyers or investors seeking long-term value. Sellers may need to align expectations with a softening market, while buyers could find more negotiating power.