The dominant force of rising demand and low housing stock is expected to underpin the housing market recovery and fuel further price increases in the next few months, albeit at a slower pace, experts say.
The dominant force of rising demand coupled with low housing stock is expected to underpin the housing market recovery and fuel further price increases in the next few months, albeit at a slower pace, experts say.
“We see upward pressure on housing prices continuing in the medium term given the current shortage and the lack of new supply coming on as developers face a difficult combination of rising costs and rising interest rates.”ANZ is expecting the Reserve Bank of Australia to raise interest rates to 4.35 per cent in August to rein in inflation, after the central bank lifted the cash rate by 0.25 percentage point to 4.1 per cent this month.
“This further exacerbates the mismatch between the underlying demand for housing and supply. The circularity here means we do not think our change of RBA call for a higher terminal rate alters the outlook for home prices.”
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