Property prices in Sydney and Melbourne look likely to keep falling for at least the rest of the year.
Financial markets are expecting the Reserve Bank of Australia to increase official interest rates again next week, probably by 0.5 percentage points. That would make it the fifth consecutive monthly increase in this rate-rising cycle, as our central bank tries to curb burgeoning inflation. Melbourne prices have declined for five months in succession, including dips of 1.5 percent in July and 1.1 per cent in June.
Martin North, founder of Digital Finance Analytics, says is “quite likely” that the property price declines in our two largest cities will be the biggest on record. Russel Chesler, head of investments and capital markets at VanEck Australia, an exchange-traded fund provider, says despite higher interest rates and cost-of-living pressures, households are continuing to spend. And the labour market remains strong, with employment still growing, he says.“Given such strong data, we can expect a rate rise of 50 basis points from the RBA next week.
jcollett_money Powell saying high IRs here to stay = 30% drop in Sydney housing prices. Take it to the bank.
jcollett_money A western suburbs house will now only cost 1.45M instead of 1.5M after gaining 23% last year
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Source: FinancialReview - 🏆 2. / 90 Read more »