Property prices are tipped to fall further as buyers “wait and see” how high interest rates go following the Reserve Bank’s fourth consecutive rate hike since May.
Market watchers say this rapid increase in interest rates could see fewer buyers in the market, which could lead to a further drop in values.PropTrack Senior Economist Eleanor Creagh said Sydney and Melbourne were leading the way when it came to falling property prices. National values dropped 1.6 per cent since the peak in March, while prices in Sydney and Melbourne fell more than 3 per cent.Ms Creagh said while increased mortgage costs would tighten the borrowing capacity of buyers, those who were in a position to buy could find themselves in a more favourable market.
“This is not only pushing prices down but seems to be causing some would-be buyers to hold off completely for the moment.”