As the housing market continues to slide, some homeowners could face 'mortgage prison'

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Australian house prices may be falling at their fastest pace in more than a decade, but the CEO of real estate website Domain says the property market is simply going from red hot to normal.

House prices have fallen for three months in a row as home buyers see their borrowing capacity reduced and contemplate whether they can afford rising mortgage repayments in a high inflation and low wages environment.

"We are moving back towards average market conditions where there is a good balance between demand and supply," he said. "Buyers were driving prices higher, chasing acquisitions in an environment where there was a lack of stock. We are starting to see that balance out."

 

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Love the 'prisoners' ripping open their brand new $2700 sofa at the end of your piece about people 'doing it tough'. At least they'll be comfortable in their 'mortgage prison'.

Don't forget all the people, that took equity out of their houses when prices were up.

. It can ONLY be fixed by inflation. Keeping the dollar value of homes high prevents people from realising that they made a loss in real terms. It's the only way out politically, snd they'll take it. .

But who could possibly have foreseen that interest rates that were literally on the floor could possibly have ever gone back up again?!

AlboMP said he’d make houses cheaper - it’s one of his greatest achievements so far.

The false economy is over!

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