In its latest Residential Property Survey, NAB economists forecast that the housing boom may start to lose steam in the second half of this year.
Off the back of forecasting that the cash rate will rise in August 2022, the big bank believes that the housing market will begin to 'flatten' in late 2022.
This will see dwelling prices rise by 3% in 2022, before falling by up to 10% in 2023.
NAB economists said it's important to remember this comes after a 'very sharp run up' over the past year, where property prices increased by a third in some areas.
This is near identical to CommBank forecasts, which were released late last year.
In 2020 the major banks predicted sharp house price falls by up to 30% in a 'worst case scenario'.
Propertyology's property analyst Simon Pressley in late 2021 said to 'ignore' property price predictions as they're often inaccurate.
"Society is fast turning into a bunch of sooks," Mr Pressley told Savings.com.au.
"Australia is fast approaching full unemployment for the first time in decades, wage growth prospects are rising with it, infrastructure investment is a record high, there's lots of industry stimulus, and households have more cash squirrelled away than ever. Why the negativity?"
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