Economists warn the housing market is headed for its steepest downturn since the early 1980s.
Soaring interest rates have halved the pace of home loan growth in just six months as the Reserve Bank’s war on inflation pulled the rug out from under the country’s once-booming housing market.
Borrowing behaviour is closely linked to changing rates and the likely increase in the benchmark lending rate to 3.85 per cent – it stands at 3.1 per cent – will put further pressure on home loan demand, ANZ economists say. With housing prices expected to double the 8 per cent-plus declines they have already seen to date, the market is headed for its steepest downturn since the early 1980s, offering a reset in prices that– if they are willing to accommodate further price falls.
Housing values have also been falling as the volume of money chasing dwellings has shrunk. As of Friday, data provider CoreLogic’s daily home value index shows an 8.8 per cent decline in values across the five mainland state capitals since the peak in early May, when the cash rate started rising.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rishi Sunak needs ‘exit strategy’ from ‘1980s playbook’ on strikes, says TUCIncoming general secretary, Paul Nowak, says PM has overestimated public support for confronting unions
Read more »
Harvesting human pee and DIY fertiliser: top conservation issues in 2023Wetland protection, ailing amphibians and rising sea levels among issues likely to have global impact
Read more »
Palaszczuk reveals major changes to crack down on youth crime after mum's deathThe Queensland Government has announced the 'strongest youth measures' to combat rising crime following the death of mother-of-two Emma Lovell.
Read more »
Pan-European sleeper train to sweep Britons to Berlin from May 2023Other similar routes have sprung up as the travel industry responds to rising fuel costs and climate damage
Read more »
Albanese ‘in denial’ over Ukraine war’s effect on energy pricesCentre for Industrial Progress President Alex Epstein says Prime Minister Anthony Albanese laying the blame on the invasion of Ukraine for high energy prices shows he’s 'ignorant' and 'in denial'. “Prices were rising well before that,” Mr Epstein told Sky News host Rita Panahi. “The basic cause is that people are artificially restricting the supply of fossil fuels.'
Read more »