Declining values will weigh on consumer spending and reduce construction, in another blow to the Albanese government’s promise to build 1.2 million new homes.

The RBA decision came after ANZ warned that property prices could slump by almost 15 per cent over this year and next, citing interest rates, low affordability and the…

ANZ’s report, released on the morning of the RBA’s August interest rate decision, expects the biggest price hits to be in Sydney and Melbourne.