The Reserve Bank warning this week that more rate hikes may be needed has tempered expectations for a recovery in the housing market. Nevertheless, economists are still eyeing a quiet rebound by as early as 2024.
Flavio Brancaleone
But other economists are so far hanging fire on any change to their current forecasts, including Barrenjoey’s Jo Masters, whohad predicted a 16 per cent retreat in prices nationally peak-to-trough, with Sydney’s highly geared market dropping anywhere between 20-25 per cent. ANZ senior economist Adelaide Timbrell expects a peak interest rate of 3.85 per cent, admittedly with some upside risk to that figure. Capital city house prices have fallen 9.6 per cent from their COVID-19 in April last year on CoreLogic figures. That puts the correction roughly halfway to“For us the property price outlook has not changed in a big way as a result of the decision [by the RBA this week],” Ms Timbrell said.
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