Rising rates haven’t automatically led to falling property prices – and supply is a big reason why.
It’s easy to assume higher rates mean lower prices. But the data tells a more complex story.
What’s happening now
That means supply is improving slightly – but still tight overall.
The bigger constraint
New construction isn’t keeping up.
Master Builders Australia has lowered its forecast for the amount of homes built over the five-year period of the National Housing Accord.
The reason? Labour shortages and cost pressures are slowing supply.
Property prices are being supported by:
So while growth may slow, a broad price decline isn’t guaranteed.
We can help you assess what this means for your borrowing power and whether now is the right time to act.
