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Two years ago when talk started about interest rates increasing some economists predicted that even with a modest 1 per cent increase in the cash rate, house prices in Australia would correct by up to 25 per cent.
If these predictions had materialised they would have marked the largest drop in Australian house prices on record.
From May 2022 until the end of 2022 prices across the housing market did soften with some markets retracting by up to 10%.
However by the beginning of 2023 it became clear that prices were no longer falling and the market was in fact in the process of returning much of its earlier losses.
This rebound has continued throughout the year and since January 2023 prices have risen by 6.6 per cent nationally according to Core Logic, leaving them just 1.3 per cent below the previous peak.
In today’s pod we summarise the reasons why house prices have remained buoyant despite rising interest rates and economic uncertainty.
Enjoy the show!
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The Long Property Show provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing in the Long Property Show constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
