Now we’re seeing eerily similar headlines with forecasts of 20 and 30 per cent dips.
Only this time round it’s the prospect of rising interest rates – not a global pandemic – that is threatening to sink Australia’s property price growth party.
No doubt first home buyers and those struggling to get into the market will be hoping the forecasts come true.
The forecasts are dependent on how far the Reserve Bank of Australia decides to lift interest rates. The 30 per cent forecast, explained here in Live Wire Markets, is based on an “uber-aggressive” scenario where the RBA lifts the official rate to 4.25 per cent.
Is that likely? More rate rises are tipped, but crystal ball gazers differ on when the RBA will stop.
What’s it all mean for the average Aussie home owner or home buyer?
If you have a mortgage, shop around to make sure you’re on a competitive rate and start planning for some higher mortgage repayments.
If you’re shopping for home, stress test your budget to cope with successive interest rate increases. Should you hold off buying and wait for a price crash? In recent years, buyers waiting for a price crash have seen prices rise in many cities, including Brisbane. If you’re buying a home to live in over the long term, the most important thing is to buy within your budget.
Talk to an independent financial planner or mortgage broker to get advice tailored to your personal situation.
Looking to make a move? View our current listings for sale or talk to us about selling.
