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    Anz (ASX:Anz) predicts massive drop in house prices next year

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    One of Australia's big four banks has forecast a major shift in the property market over the next year and a half.

    Anz economists have predicted the property market could fall as much as 20% in 2023 before a 5% rebound in late 2024.

    Sydney and Melbourne are anticipated to take the brunt of the price falls, while the median house price in WA is expected to drop by $70K next year.

    The bank says the projection is mainly due to reduced borrowing capacity from rising interest rates.

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