What effect would an additional interest rate hike have on property prices in Australia?
A few property analysts and economists have predicted that house prices would fall this year and 2023 because of rising interest rates. There is still a good chance that property value will rise regardless of interest rates . Let's take a look at the past performance and how our research led us to this conclusion. Australians who recently bought a home have a mortgage which must be repaid with interest. We all know that interest rates have increased in recent months, with the Reserve Bank threatening to increase them further in order to lower inflation. It is very difficult to control inflation once it has established itself. Economists worry that rising interest rates could make housing more expensive and reduce buyer demand, which will in turn lead to lower prices. It is understandable that rising borrowing costs will result in lower buyer demand and prices will fall. However, property prices have risen during this period. The interest rates have also risen. The major banks hav