As Australians adjust to rising grocery prices as the cost of the humble lettuce goes through the roof, housing experts say there could be a silver lining for first-home buyers.
"We operate in South Australia in an Australian market and the eastern seaboard is demanding produce because of the floods.
The logic goes something like this: As the cost of groceries and other goods increases, pressure is applied to household budgeting, drying up the amount of disposable income available to sink into housing — driving down demand."The Reserve Bank sets monetary policy based on inflation, so they're looking at those rising lettuce prices and thinking, 'We better slow this down a bit'.
"We know that first-home buyers like transacting in slower property markets — we definitely have a much slower property market this year compared to last year."There is already evidence of increased affordability. House prices have dipped in Sydney and Melbourne, and University of Adelaide property market analyst Peter Koulizos said Adelaide and Brisbane — where growth has continued — would follow suit."There is no doubt that we will follow Sydney and Melbourne.
"International migration [is] starting up again so we are going to go back to more normal levels of population growth," she said.
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