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Prices continue to rise through the first half of 2022 but at a slow pace.

By Rishabh Dhall

Expected property price growth to moderate in the first half of next year, but 2023 would see a drop and the house prices would drop by 10 percent over 2023 as the RBA takes the cash rate to 1.25 by the third quarter of that year. The current official cash rate is 0.10 percent.

CBA’s head of Australian economics

As we can see the market is slowing down, but the growth rate is still above average.

We would also see what affects the market and why the market is slowing down at the pace of growth.

  1. Over the recent months, we have seen that the market is losing its strength on the factors that have been doing great in increasing the housing value.
  2. Fixed mortgage rates are going up, and the higher listing is taking some urgency away from the buyers.
  3. Surely, credits are less available, and affordability has become a concern and a more substantial barrier to entry.

There is no denying that the stock level is rising at a faster rate, and buyers are also getting confidence towards the purchasing of the property.

We will see more listing coming on the way and continue to rise, which would eventually slow down the capital growth.

The prices which were touching the roof have finally triggered alarm to many financial institutions like RBA, CBA, and ANZ.  We can expect more constraints which will stabilize the market and will prevent financial threats.

Now the question is How much could borrowers save on their home loans when interest rates rise by making extra repayments now?

To learn more about this, attached is the case study, that will give you an idea of the same.

https://bit.ly/3GJQMR5