House prices tipped to plummet 8 percent

HSBC bank forecasts Australian house prices will fall up to 8% by the end of next year, describing current declines as only the beginning. The bank warns first home buyers against 'catching a falling knife', whilst lending conditions tighten with banks reducing loan approvals and cancelling pre-approvals. Economic uncertainty, rising unemployment and small business closures are creating confusion in the property market, with mortgage brokers reporting a 10% decline in loan applications despite falling house prices.See omnystudio.com/listener for privacy information.