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Australia Market Mortgage

Grim forecast for sky-high house prices

Sumary of Grim forecast for sky-high house prices:

  • Housing affordability in Australia has deteriorated due to rising property prices amid sky-high demand from owner-occupiers, specifically first-home buyers…
  • A new report by ratings agency Moody shows that, on average, dual-income households needed 24.6 per cent of their monthly income to meet home loan repayments last month, rising from 23 per cent in September and 22.7 per cent mid-2020, when new mortgages were their most affordable in a decade…
  • Moody warns housing affordability will continue to worsen for the rest of this year despite record low interest rates, given dwelling prices keep surging but incomes remain low…
  • “Housing prices or interest rates would have to increase materially — by 24.9 per cent or 225 basis points respectively,”..
  • “A 15 per cent increase in housing prices combined with 100 basis point increase in interest rates would have the same impact.”…

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