Previously-Secret Documents Reveal The Reserve Bank Reckons House Prices Are Set To Drop By 20%

It’s a grand old day because the Reserve Bank of Australia (RBA) has predicted house prices could fall by 20 per cent in the next two years which would be the biggest drop in prices since the 1980s. A 20 per cent drop is a lot, but to be clear, that’s basically just going to take us back to where we were at the start of 2020. House prices across the country reached record highs in 2021 and went up 25 per-fucking-cent in 12 months. The RBA has forecast prices could drop by 11 per cent by mid-2023 and the 2021 growth could be completely wiped out by the end of 2024. I’m down on my knees praying here. House prices in Sydney and Melbourne — Australia’s most expensive cities — dropped for the first time in a long time in April 2022

the Financial Review revealedrising interest rate main reasons for the house price uptick in 2020 and 2021 was a record-low interest rate.When the RBA moved the interest rate to 0.1 per cent in 2020, people rushed to take out mortgages and were able to take out bigger loans than before. Some people could afford to pay more for a property, so the prices rose. But it all went too far and inflation started to spike. To lower inflation, the RBA raised the interest rate to basically discourage people from spending so much — or spending more than they could actually afford. due to a number of factors Michele Bullockthis La Niña season

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