Falling housing prices only ‘halfway through’ the downward cycle
Housing prices across capital cities are tipped to drop, with prices already falling.
On average, Sydney house and apartment prices have fallen by 4.5% while Melbourne has seen a drop of 3.5% across the board.
ANZ Senior Economist Daniel Gradwell tells Ross Greenwood we’re only halfway through the cycle.
He says rising interest rates tend to drive prices down, but this time around, “that’s not the case”.
“We think the current slowdown has been driven by the tightening availability of credit.
“A number of banks and other lending institutions have tightened up their credit policies, it’s making it harder for people to access the funding and for people that can borrow it’s limiting the amount they can afford to repay.”
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