AUSTRALIA: Australia’s property market is facing one of its most severe downturns in decades, with national house prices falling for a sixth straight month as higher interest rates reduce borrowing power.
Sydney and Melbourne lead declines
The housing slowdown has deepened as the Reserve Bank pushes interest rates higher to combat inflation. Sydney and Melbourne have experienced particularly large falls this year.
Lower prices may improve affordability for some buyers, but high mortgage rates can offset much of that benefit by reducing how much households can borrow.
Housing slowdown reaches wider economy
Property affects construction, household spending, bank lending and state tax revenue. A prolonged downturn can therefore have consequences well beyond homeowners and buyers.
Follow Australian property news on NewsNationOnline. Source: ABC News.
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