House prices to fall but not crash: AMP

A leading economist now expects house prices nationally to fall by 10 per cent and in by 20 per cent in Sydney and Melbourne, but says a crash is unlikely.

Signage for a real estate property is seen in Carlton North, Melbourne, Wednesday, July 18, 2018. Source: AAP Image/James Ross

House prices are set to fall further but a property crash is unlikely, an economist says in predicting declines in Sydney and Melbourne will reach 20 per cent.

AMP Capital has downgraded its outlook for home prices, particularly in the previous "boom time" cities of Sydney and Melbourne.

Chief economist Shane Oliver says a property crash - involving national average prices falling by 20 per cent or more - remains unlikely.

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