The Commonwealth Bank are predicting a significant drop in Perth house prices in 2023.

Head of Australian Economics at Commonwealth Bank Gareth Aird said they expect prices to drop by as much as 9 per cent.

“We still think prices will rise into next year, given interest rates are still very low and there’s still a pretty decent momentum behind the housing market,” he said on 6PR Breakfast.

“But the call for prices to fall is really about 2023, and the reason we think prices are going to fall is we think the Reserve Bank will be raising the cash rate because the economy will be doing very well, and higher interest rates will mean lower prices.”

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