House prices to fall as rate rises take their toll
The housing market looks set to finally slow down as consecutive interest rate rises in recent months take their toll.
Australia’s largest real estate group Ray White has reported a sluggish March quarter with turnover up only 8 per cent compared with last year – the smallest increase since the global financial crisis, News Limited reported.
Brian White, joint chairman at the group, noted such a slowdown had continued into this quarter, with the May rate hike by the Reserve Bank serving to dampen demand further.
"Judging by our April results, it looks as if the interest rate increases are having an impact on activity," he said.
"With the additional interest rate hike, it would be the first time that the Australian market has not shrugged off the pattern of increases in the past."
The slowdown in house prices and market activity may be of interest to Australians who wish to compare home loans and secure a property. Data released last week by the Victorian Sheriff’s Office showed that an average of one home per day is being repossessed in Victoria as a result of rising mortgage repayment costs.
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