Introduction
House prices always incite a lot of interest in Australia. Until recently it was all about surging prices and ever worsening affordability as prices boomed. But the focus is shifting to the emerging slowdown in the face of rising interest rates. This note provides a Q&A on the main issues.
What is the current state of the property market?
Last year saw national average home prices rise 22%, their fastest 12-month increase since 1989, with gains propelled by record low mortgage rates, home buyer incentives, coronavirus driving a switch in spending to “goods” like housing, recovery from the lockdowns, a lack of supply and a fear of missing out…