The fundamental reason house prices will fall this fall

The prices that people expect tomorrow influence today’s demand and supply. Economists say that “fundamental” economic factors, such as interest rates and family income, determine home prices. For some unknown reason, economists don’t consider people’s expectations of future house prices to be a major factor in determining current house prices, but they should. Economists have … Read more

Speedy escape from housing market slump unlikely: ARMs tied amid low rate lock-up

Home sales, construction volumes and now even home prices in many markets (the last shoe to drop in a housing correction) are falling. Clearly, the fact that mortgage rates have soared from a low of 2.6% in December 2020 to six percent in early September is holding many would-be homebuyers in the grips. The last … Read more

House prices: RBA’s rapid rate hikes could see property prices tank

On Tuesday, the Reserve Bank of Australia (RBA) hit mortgage holders another 0.5 percent interest rate increase – the fifth consecutive monthly increase. The decision sent the Official Cash Rate (OCR) to 2.35 percent, well above April’s record low of 0.1 percent. once the rate hike is passed on to mortgage holders, the average discount … Read more

ANZ’s grim prediction: Australian house prices to plunge by 18 per cent

Homeowners have been hit hard after a major lender revealed that property prices will plunge even more than anticipated. According to the latest ANZ housing report, property prices are expected to fall almost 20 per cent by the end of 2023, and the collapse is not limited to our major cities. Driving the gloomy trend … Read more