The Effects of Falling Australian House Prices on the Australian Economy

Running head: ASSESSMENT TASK 2 ASSIGNMENT 1
ASSESSMENT TASK 2 ASSIGNMENT
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ASSESSMENT TASK 2: ASSIGNMENT 2
“The effects of falling Australian house prices on Australian economy, discuss how decline in
house prices happened in Australia and explain why economists should concern about it.”
Introduction
Australian housing and home pricing is a good case of study and it has been focused by
many urban planners over the previous years. The major Australian cities Sydney and Melbourne
are the main focus due tothe drastic fall of the prices by a larger percentage. The other cities in
this category include Canberra, Darwin, Perth, and Brisbane. It is evident that the economy of
Australia is highly impacted by this hence immediate actions need to be taken and better plans
put in place. The rise of concern about the home pricing to the economists is literally because a
few discussed factors like the investment policiesand the marketing strategy among others about
the occupancy of the homes and the procedures lied to collect taxes as discussed.
Falling House Prices Effects on Australian Economy
Falling residence pricing motivates many citizens to be in terrible fairness. This is the
scenario whereby own property has well more value than a high-quality home loan. When there's
a fall in residence expenses, there has a tendency of bad economic downfall and terrible loss of
monetary value.
After residents observe the falling in residence fees, the important wealth form reduces
hence reduction of self-belief on expenditure. The decline in residence costs also has a reverse
effect on the building of the latest households.

ASSESSMENT TASK 2: ASSIGNMENT 3
The price growth curve showing percentage of the house fall in Australia monthly and yearly.
How it happened
During the year 2011, Australian belongings valued at $133.1 billion fell one quarter that
is the December quarter whereby the urban house cost declined at a rate of 2.4 percent across the
nation (Malouf, 2011). It is evident from the Statistics Bureau that Sydney followed by
Melbourne are leadingdrops with 3.7 percent and2.4 percent respectively(Nguyen & Wang,
2019). There has been a smaller quarterly decline in Brisbane, Perth, Darwin, and Canberra.
Adelaide followed by Hobart have been the handiest capital cities in which costs rose inside the
final 3 months of the previous year(Guest & Swift, 2010).