What impact would an increase in interest rates have on property prices across Australia?
A select few property experts have been constantly predicting how property prices could drop for the next few years consistently after 2 consecutive interest rate hikes in the last few months by the RBA. However, after doing some research around it, our personal opinion is quite different and we believe that house prices will continue to increase despite rising interest rates . Here is a look at why we do believe this to be the case Australians who recently bought a house have a mortgage that must be repaid with interest. We all know that there was an increase in interest rates in May 2022. The Reserve Bank could soon raise interest rates to lower inflation. It is very difficult to control inflation once it has established itself. Economists worry that rising interest rates could make housing more expensive and reduce buyer demand, which will in turn lead to lower prices. It is logical that rising borrowing costs will result in lower buyer demand and, consequent...