Posted 1/17/2024, 10:11:00 PM
Housing Market Resilience Despite Challenges
- Housing market remains strong despite pandemic and rising interest rates due to policies aimed at preventing house prices from falling
- Mortgage rates increased over 400 basis points but only dampened, not lowered, house prices
- Market now expects RBA to cut rates in 2023-2025, benefiting the high number of variable rate mortgages
- RBA would cut rates either because economy is slowing or rates are above "neutral" setting
- If house prices take off again, this period of flat growth may be looked back on as a time of relative affordability