Rate rises may slow housing market but no affordability improvement in sight

Earlier than expected interest rate rises are unlikely to dramatically hit the housing market and economists and housing analysts say affordability will continue to be a concern in Sydney and Melbourne.and a strong improvement in unemployment, despite previously saying the outlook was for rates to remain at record lows until 2024.Peter Rae

Rich Harvey, chief executive of buyer’s agent Propertybuyer, said a rate hike could now be as soon as November or December. He said it would take “more than a couple of increases over a couple of years” for there to be a significant effect in most markets. “We know that at present the property market has a demand-supply imbalance, with supply lagging, and it’s one of the main causes of high property price growth.”

The group’s members include the Australian Council of Trade Unions, Australian Council of Social Service, Industry Super Australia, Housing Industry Association, Master Builders Australia, the Property Council of Australia, National Shelter, Homelessness Australia and the Community Housing Industry Association.

JennieDuke Do they remember how to raise rates? Lowe has never done it before. Someone needs to show him what to do.

JennieDuke What will a rate rise do to solve the current inflation problem, which is about supply chains and supply of goods. If anything a rate rise would make things worse for these problems.

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