The value of the Australian dollar is a significant driver of economic activity across the country.
While the value of a home has generally been stable over the past several years, it has dropped by over 40 per cent in the past five years.
There is a real risk that house prices are about to go through a period of steep decline, particularly as the cost of owning a home continues to rise.
According to a recent report from Australian bank Morgan Stanley, house prices will continue to fall in the years ahead as households seek to reduce the debt burden of their children and other costs.
The report said the Australian economy could be expected to shrink by between 4.5 per cent and 6 per cent by 2023-24.
It noted that the cost to buy a home in the mid-2020s was $11,100, compared to $19,000 in 2019.
In 2020-21, the average home price in Australia was $5,300, according to the Bureau of Statistics.
The BIS also reported that the average Australian household spent $1,539,927 on housing, including on mortgages, mortgage interest, and rent, in 2020-11.
In the last five years, household debt has increased by an average of $7,500 per household, a $3,400 increase in the last year.
The Australian Bureau of Budget and Statistics estimated that household debt stood at $15,400 per person in 2020, with an average household debt of $53,200.