Vic house prices to plunge as economy loses billions

House prices in Victoria will plunge, and the state economy will lose a billion dollars a week as a result of the COVID-19 pandemic, according to new modelling by the department of treasury. House prices are expected to tumble as much as nine per cent in six months, knocking $80,000 off the value of the median Melbourne house valued at $860,000. Treasury is also forecasting another 270,000 Victorians will lose their jobs and the state unemployment rate will climb to 11 per cent. To mitigate this, the Victorian Government is seeking to establish a $24.5 billion emergency fund. A bill for the multi-billion emergency fund is expected to be introduced tomorrow.