Louis Christopher, managing director of SQM Research, said a 15 per cent fall in prices was possible with a 2 percentage point increase, but only if inflation remained below 5 per cent. Otherwise, a correction was unlikely.
Not mentioned, however, is the hit to sentiment of such a fall in prices. “That would likely have household wealth effects on consumption as well as sharply slowing activity in the housing market,” Mr Strickland said.New loans issued where the debt was more than six times the borrower’s annual income increased to 24 per cent in the December quarter. The RBA said this category of borrower was at higher risk of mortgage default.
“Around half of these borrowers have accumulated excess payment buffers equivalent to one year’s worth of their current minimum repayments that could help ease their transition to higher repayments,” the RBA said. The median excess payment buffer for the 60 per cent of borrowers with variable mortgages lifted to 21 months in February, and even with a 2 percentage point rise in interest rates, they would still be 19 months ahead.
Wonder how the FOMO buyers are feeling right about now?
RBA signalling for more stimmy... oh yeah
ronmjm When has the RBA ever been right about house prices? Name one time. CBA is just as bad. 2020 CBA forecast house prices to fall 10-32%. 🤣🤣🤣
That would be bad for people who end up in negative equity. But as a home owner, I'd be thrilled if fewer investors and more regular people could buy I'm my suburb.
:)
you say that like it’s bad thing
Property Property Latest News, Property Property Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: abcnews - 🏆 5. / 83 Read more »