New research by JPMorgan predicts house prices could stabilise sooner than previously expected, amid a lift in auction clearance rates.
The top 25 per cent of properties by value have experienced a 12.9 per cent price fall since last April, while the cheapest 25 per cent of the market have eked out a 0.7 per cent price gain, according to analysis by the National Australia Bank.
UBS chief economist George Tharenou said improvements in auction clearance rates had been historically consistent with stable, or even rising prices. “Ongoing RBA rate hikes will further reduce borrowing capacity ahead, especially since APRA reinforced the 3 per cent home loan serviceability test buffer,” he said.Mr Tharenou said measures of housing sentiment, including perceptions of whether it is a good time to buy a dwelling, remained weak.
Westpac senior economist Matthew Hassan said it was far too early for prices to be stabilising, particularly given the prospect of more rate rises in the months ahead.
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