Westpac Downgrades Australian House Price Forecasts for 2026

Westpac has revised its house price forecast, now expecting a 7.3% decline from peak to trough, with Sydney prices projected to fall 10% and Melbourne prices 8% in 2026. This reflects a more intense downturn than previously anticipated.

This revised outlook from a major bank signals increased caution for all market participants in Melbourne's western growth corridor, suggesting a prolonged period of price adjustments and potential opportunities for patient buyers.