About this episode

The episode discusses the implications of falling house prices in Australia on mortgages and the broader economy.

Australia's housing downturn is accelerating, with national prices recording their biggest monthly fall since late 2022 as higher interest rates, tighter investor lending rules and geopolitical uncertainty weigh on demand. In this episode, Chris Bourke talks to Bloomberg economist James McIntyre about why the weakness has spread beyond Sydney and Melbourne. The episode also explores what falling house prices mean for the broader economy. McIntyre says the decline is likely to hit consumer spending through the "wealth effect," slow housing construction and eventually shift the Reserve Bank's focus from stubborn inflation toward supporting growth with rate cuts.  See omnystudio.com/listener for privacy information.

People in this episode

Host: Chris Bourke

Guest: James McIntyre

Topics covered

• housing market
• mortgages
• economic impact
• consumer spending
• interest rates

Keywords

• house prices
• mortgage
• wealth effect
• Reserve Bank
• interest rates
• consumer spending
• housing construction

Mentioned in this episode

Organizations: Bloomberg

Places: Australia, Sydney, Melbourne

More episodes of The Bloomberg Australia Podcast

• A Remote Mine Predicts Major Wars – And It’s Reopening · July 8, 2026 · 22 min
• ‘Egregious and Inexplicable’: KPMG’s Day of Reckoning · June 25, 2026 · 14 min
• Why This Giant Investor Thinks the RBA’s Next Move is a Rate Cut · June 17, 2026 · 15 min

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