Why property prices could fall faster than first expected | Kate Burke
Home buyers will have their spending power reduced by rising interest rates, putting downward pressure on property prices.
RBA governor Philip Lowe had flagged that the bank wanted to return the cash rate to a “more normal” level, which he expected would be about 2.5 per cent. “Whilst it’s going to be difficult for a lot of people who have never seen an interest rate hike previously, and there will be some adjustment, I don’t think broadly there are going to be problems,” Emmett said.
Independent economist Saul Eslake said the RBA had more than fully reversed the reductions made at the start of the pandemic, when the cash rate was cut from 75 basis points. With more rate hikes to come, buyer demand and property prices are set to be impacted.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Swoop Aero’s founders turned down a $100m takeover offerThe drone-powered logistics start-up has raised $18 million in a private venture capital round led by Main Sequence, after rejecting a tempting offer.
Read more »
Why Swoop Aero’s founders turned down a $100m takeover offerThe drone-powered logistics start-up has raised $18 million in a private venture capital round led by Main Sequence, after rejecting a tempting offer.
Read more »
‘A very clear jolt’: Why house prices are tipped to fall even furtherMay’s auction clearance rates dropped below 60 per cent in Sydney and Melbourne, and below 70 per cent in other capitals, showing the property market is weakening.
Read more »
From autopilot to ‘on purpose’: Why it’s time to ditch the word ‘should’After two years of life on hold due to the pandemic and lockdowns, how do we get back in the driver’s seat of our lives and claim a life of purpose and meaning? Amy Eliza Wong shares how to turn your ‘shoulds’ into ‘wants’.
Read more »
‘A very clear jolt’: Why house prices are tipped to fall even furtherMay’s auction clearance rates dropped below 60 per cent in Sydney and Melbourne, and below 70 per cent in other capitals, showing the property market is weakening.
Read more »
Why Graham Arnold believes Australia is finally ready to make a run to the World CupIt has been a clunky and mostly unimpressive performance from the Socceroos this year, but coach Graham Arnold says the team is finally ready to click.
Read more »