The rising cost of living has increased the likelihood that a downturn will come sooner than expected for the Sydney property market.
Core inflation, the change in the cost of goods and services excluding those from the food and energy sectors, also rose 1 per cent to an annual rate of 2.6 per cent. Canstar editor-at-large and money expert Effie Zahos said with core inflation well within the Reserve Bank’s inflation target, the RBA may have little choice but to raise the cash rate.
He said when the cash rate did rise it would affect both the Sydney and national property markets. ANZ recently forecast property prices would drop three per cent nationally in 2023 due to higher interest rates.“If higher interest rates happen sooner, that may bring forward the point at which house prices start to turn down,” he said.
How funny…bs LNP propaganda trying to win votes of locked out generations of Australians