A 60% price fall - Incredible prediction of Australian real estate bloodbath excites Twitter

A forecast that Australian property prices will fall 60% over the next few years has excited the Twitterverse.

The prominent property doom commentator Steve Keen has expressed ironic relief that another analyst has forecast even worse tidings than his longstanding forecast for the Australian property market.

United States analyst Jordan Wirsz forecast a 60% fall in Australian capital city house prices over the next five years.

“Thankfully someone taking the bear heat off me,” Keen tweeted today.

Wirsz, a self-described author, speaker and real estate expert, gave a webinar on Australian property this week. His webinar is available to be heard for $89.

News Ltd papers reported today his forecast that right now was not a time to be buying real estate in Australia.

“The market has slowed substantially but residential prices are likely to fall up to 60%, possibly even more, within five years," Wirsz said.

It reported his outlook was even grimmer for land, which Wirsz said being more speculative would plummet by as much as 80% and 90% in value.

Commercial property would shed at least 50% of its value, he told reporter Sonja Koremans.

Wirsz suggests a sluggish recovery would begin in 2016.

“If you are home owner, be cautious, get rid of your debt, consider selling if you don’t plan to be in your house for more than seven years and downsize or become a tenant," he said.

The only winners will be real estate agents cashing in on bank-owned properties, he added.

Properties in capital city would be hardest hit “because Australian cities are some of the most overvalued in the world and more speculative than regional areas", Wirsz said.

While the comments have been questioned by Tim Lawless at RP Data, other commentators have given the forecast some credence including economist, Stephen Koukoulas.

“This looks ridiculously extreme: but many who've experienced a property crash still cannot explain why Aust is diff,” Koukoulas tweeted.

Wirsz says he has $500 million of real estate based transactions under his belt.

Wirsz, a former fund manager and private capital financier, says he has been heavily involved and invested in real estate for over a decade.

“Jordan has seen the national real estate markets at their best, and at their worst.

“Jordan has been featured on Fox News, CNBC, NBC, and many others, as well as having been recognized by members of Congress, Senate, and state government, awarded Young Entrepreneur of the Year by the SBA, Top 40 under 40, and has published four books,” his marketing screed says.