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 National prices rose 0.7% in March (source: Cotality). New listings increased 3.8% month-on-month (SQM Research). But total listings […]
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
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National prices rose 0.7% in March (source: Cotality).
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New listings increased 3.8% month-on-month (SQM Research).
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But total listings are still 6.7% lower than a year ago.
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. I can help you assess what this means for your borrowing power and whether now is the right time to act.
