Property prices plummet as auction clearance rates crash | Sunrise

Moving on, backlash from the budget is fueling a real estate crisis with sellers now being told not to expect anyone to show up to their auctions as clearance rates plummet to levels last seen during the GFC.And it's seen values in some capitals tumble.If you own a home in Sydney, for example, according to Domain, it's going to lose more than $120 ,000 in value.That's over the next 12 months.In Melbourne, you are set to lose around $84 ,000 in value.Tanya, they are massive decreases.

Is that what you wanted?Are those numbers what you're expecting?

Well, what we wanted is for first homebuyers to have a shot in the market, and that's exactly what's happened.You go to an auction now and you see first homebuyers for the first time in many years actually able to buy a home of their own because they're not competing against cashed -up investors.We know that things needed to change in this country.There's generations of young people locked out of home ownership.That has an impact not just for them as individuals economically, but for how we are as a country, for the sort of country we are.If young people feel locked out of home ownership, as they have been, that really has an impact on the cohesiveness of our nation.

So we are so pleased that first homebuyers are back in the market and they're back in a big way.

So Tanya, are first homebuyers the winners and homeowners the losers?

Absolutely not.I mean what you see is...

Because their prices, if you own a home, your house price is going down in New South Wales and Victoria.So that's exactly what's happening isn't it?

So first of all Liz, as you say Nat, there's different things happening in different parts of the country.If you're selling a home right now, you're probably buying another home right now too.So you're buying and selling in the same market essentially.But what we know for sure is that we are still not building enough houses in this country.We anticipate that house prices will continue to grow more slowly.They jump around a bit week to week.

You don't make a decision week to week if you're buying or selling a home.You make a decision based on your long term interests.And we are confident that house prices will continue to grow more slowly.That's exactly what we want.

That is exactly the change.The projections are not for them to grow more slowly.The projections are for them to fall in Sydney and Melbourne 6, 7, 8, 9 percent over the next year.

And you don't have to think about this week to week or month to month but longer term what we want to see is house prices growing more slowly because Nat.Young people have been locked out of home ownership in this country.

Everybody knows their kids can't afford a house.We know that.It's just how much do you want to fall.

Matt, let's go to you again.

Matt, let's go to you.

Are you happy?Well, Tanya mentioned me. I think I deserve a reply, Tanya.Well, no, I don't think anyone's happy.Everyone's...Everyone's a loser right now.There were auctions on the weekend when no one turned up.

Then you said first home buyers are back up, well when no one turns up, no one wins.The seller loses, the buyers aren't there, and the big problem now is the banks are pulling back finance.And I've heard this reported a number of times, I've done four small business roundtables in the last few weeks, and banks and real estate agents are reporting that they're pulling back.And that means first home buyers don't have the money to go to an auction and bid.That's why you're seeing these auction clearance rates really low.So it's just a complete misreading of the mood out there.

If we don't have a healthy property market, everybody loses.Our economy loses, first home buyers loses.homeowners loses, everybody goes down and this is the problem with raising taxes based on a lie.It hurts confidence, it's hurting our economy and as I said earlier, the economic results are what's going to matter.

using our 5 % deposit, hundreds of thousands of first home buyers using our 5 % deposit plan and getting into a home of their own.

It is a generational change.Some of them are now in negative equity where their house is now worth more than they owe the bank.We might talk about that next week but thank you we've got to go to the news.Thank you we'll see you next week.