House prices surged over the past year, but the recent wave of interest rate hikes has begun to exert pressure on the market. The once-booming housing sector is now showing signs of cooling, with the rate increases affecting affordability and buyer sentiment. While the rapid price growth of previous years may have seemed unstoppable, the current environment is introducing a level of uncertainty. Homeowners are facing increased mortgage repayments, potentially impacting their ability to spend on other goods and services. Additionally, prospective buyers are being more cautious, mindful of the higher borrowing costs. This shift in the market dynamic suggests a potential slowdown in the pace of house price growth, as affordability constraints and economic conditions come into play. As the effects of the rate hikes continue to ripple through the housing market, it remains to be seen how sustainable the previous price growth will be in the face of these new challenges.
To know more: https://www.smh.com.au/property/news/house-prices-jumped-last-year-but-rate-hikes-have-started-taking-a-toll-20240101-p5euj0.html
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