In the past, rate rises were often 0.25 percentage points a month, but lately the rises have been double that size.
Property prices boomed last year as buyers took advantage of low interest rates and searched for more space to work from home, but the pace of growth has slowed and tipped into price falls as buyers worry about mortgages getting more expensive. “The acceleration in rate hikes and rapidity of them has shocked the market, that’s why we’re seeing a rapid acceleration in price declines,” he said.
“The Brisbane market recently turned too… and has turned in a short space of time given the speed at which the RBA has put through rate hikes,” he said. “As a rough rule of thumb a 1 per cent increase in the cash rate means an 8 per cent decline in house prices,” he said.
Well when you turn a basic human need (shelter) in to an asset class to be speculated on, this is what you get.
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