Australian house prices

PHOTO: For sale signs outside an apartment block in Canberra. Economists say house prices will fall, at least in the short term, due to coronavirus restrictions and massive retrenchments. Lukas Coch/AAP

Massive job losses and ban on house inspections and on-site auctions will create a short-term hit, economists say

Economists have forecast house prices in Australia will fall following coronavirus-related restrictions on real estate operations and the mounting tally of huge job losses across the economy.

On-site auctions and open house inspections will be banned from midnight on Wednesday under the government’s latest attempts to prevent the spread of Covid-19.

And although industry insiders remain bullish about the market’s ability to emerge from the restrictions with renewed demand, economists have painted a “disturbing” picture of the Australian jobs market, which could spell doom for property prices.