House prices likely to fall for ‘at least the next few months’
REA Group Economist Angus Moore says the effect of higher interest rates is flowing through to housing prices, with last month seeing prices fall for “the first time nationally since the pandemic began”.
“We’ll probably continue to see prices fall at least for the next few months and potentially into next year given how quickly and how abruptly the RBA is raising interest rates,” he told Sky News Business Editor Ross Greenwood.
Mr Moore said the main driver for “surging house prices” during the pandemic was low interest rates, and this could start to have a reverse effect as rates continue to rise.
“But equally, could work the other way if you buy now, make it through the next period of rising interest rates and benefit from the next cutting cycle,” he said.
In partnership with realestate.com.au.
( Source : Sky News Australia Youtube Channel )
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