Liberals are scaring first-home buyers with warnings of negative equity – but experts believe there’s little to worry about (opens original article in a new tab)

Fears of negative equity for first-home buyers in Sydney and Melbourne are concentrated in top-end markets with falling prices, but experts suggest most buyers are in lower price brackets and risks are manageable.

• Fears of negative equity for first-home buyers in Sydney and Melbourne are concentrated in top-end markets with falling prices
• CBA economists predict 6-7% price drops by 2026, but experts say most first-home buyers purchase in lower price brackets
• Experts downplay negative equity risks, noting that affordability issues mainly affect lower-end properties and that unemployment remains low