– much sooner than many predicted. CoreLogic’s national Home Value Index posted the first month-on-month rise since April 2022, rising 0.6 per cent in March.
Similar market recovery transitions have played out many times. For instance, in the period before the 2008 global financial crisis , the RBA implemented a series of rate rises, peaking at 7.25 per cent, as it tried to wrestle down strong inflation. Australia faces differing economic circumstances, so we’re unlikely to see rates drop and prices surge as sharply in the short term.Advertisement
On the other hand, government disincentives can inhibit a potential rebound – particularly relevant given murmurings the federal government has set its sights on restricting negative gearing, capital gains tax exemptions and borrowing within self-managed super funds. As is typical with an aggressive cycle of interest rate increases, mortgage stress is mounting, which could force numbers of property owners to sell. While the mortgage cliff may be overhyped, it does provide investors with greater property volumes and choice – albeit definitely not a vulture-like smorgasbord.
Does the AFR do naked asset price pumping often? Or this is a new thing?
The author of this article runs a propardee advisory business. Why not just call it paid content instead of trying to cheat readers with misleading content?