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clock Created with Sketch. 14/05/22
18:36
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Originally posted by JimmyD75
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No. If you want to see lower house prices in Australia, then all you need is a Reserve Bank with the guts to raise interest rates. Significantly lower prices are a certainty if the cash rate is raised to neutral levels of say, 2-2.5%. But the RBA has only just decided last week to move rates up from 0.1% to 0.35%, way slower than other central banks. You can't expect house price declines already when the cash rate was virtually at zero just a week ago. Interest rate movements take a few months to gain traction.
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“If you think interest rates don't have an effect on house prices, and other asset prices for that matter, you simply don't have a clue.”
