House prices head for historic 10% drop as fourth interest rate hike looms
Australian house prices are expected to drop by 10% as the Reserve Bank prepares for a fourth interest rate hike. Data indicates that property values are falling in over 90% of suburbs due to high borrowing costs and economic pressures.
Why it matters
This potential historic downturn in the housing market highlights the severe impact of inflation-fighting monetary policies on household wealth and affordability.
CBA has predicted a 12-13% drop in Melbourne property prices, while Cotality data revealed house prices are now falling in 90% of Australian suburbs. Photograph: James Ross/AAP CBA has predicted a 12-13% drop in Melbourne property prices, while Cotality data revealed house prices are now falling in 90% of Australian suburbs. Photograph: James Ross/AAP Housing House prices head for historic 10% drop as fourth interest rate hike looms Cotality data reveals property prices are now falling in more than 90% of Australian suburbs, while analysts expect market downturn to continue
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Prefer the Guardian on Google The prospect of the steepest property market downturn in history will not stop the Reserve Bank from delivering a fourth interest rate hike as it battles to bring inflation back under control , economists say.
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