Why a huge surge in US inflation could derail the Australian property market

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ANALYSIS: Why a huge surge in US inflation could derail the Australian property market

Adelaide Timbrell thinks Australians about to take on fixed rate mortgages will notice higher costs in coming weeks and months, even if the Federal Reserve sits on its hands for months.

"Most banks are now thinking it's going to be more expensive in two or three years, which means we're already seeing fixed rates start to go up."As we know from the latest data delivered in the big banks' reporting season, many Australians are typically ahead on their mortgage repayments — some by up to two years.

You could argue that current government housing policy provides something of a "floor" for property market prices. She says it's clear recent housing policy has both supported and driven higher price growth in the market, and that's not changing any time soon. Adelaide Timbrell thinks even without any change in government housing market policy, average property price growth is set to slow markedly.While unlikely, she doesn't rule out the average national property price falling.

 

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People have systematically been betting that something which can only rise will stay constant for 30 years. It's like betting against gravity. Good luck to them.

“Detail” aka return to normalcy

If only someone had seen this coming years ago and instead of continuing to inflate prices by helping more people buy high they had been working to bring prices more in line with wages. Idk...

Now is a good time to grandfather Negative Gearing. Or just abolish it altogether

Australian 'property market'. Wouldn't it be great if it was 'Australian homes'. Our free market system is ridiculous. The poor pay for the 'property' of the wealthy. We need rent controls at the very least.

If this is what it takes to not pay $5m for a average 3 bedroom house ...

Ahhh doom and gloom ABC at it again

Nothing to see here. The gov has spent billions to push up price. They will still use trillion to protect it at whatever cost.

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