Higher borrowing costs could cool hot Oz property market, analysts indicate

[Nicholas Wallwork]

Higher borrowing costs could cool hot Oz property market, analysts indicate*Soaring property prices in Australia that have seen values jump an average of 20% in the last year*could slow to between zero and 10%, according to analysts.

This week's rise in interest rates to 4.5%, the sixth increases since October, could push buying*a home out of the realms of affordability for many Australians and there has been a noticeable*drop in the number of first time buyers since the government's booster grant scheme ended.

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[Ben RE]

While the constant rise can always been seen with alarm, it is not as if the government is doing nothing, but they can only do so much.

As far as keeping first home owners out of the market, this will only be a temporary position as has always been the case. First home owners have always found it easier to buy into outer areas of the major cities and really nothing has changed there. You can't be seriously looking to buy into an expensive suburb as a first home owner. Can you?

This is nothing new.

Ben
hotpropertybrisbane