01 Nov Australian home prices up on supply shortfall, but at risk from high rates
Key Points:
- Australian home prices rose again in October, with the supply shortfall on the back of record immigration dominating. Prices are now on track for a 9% gain this year.
- While the supply shortfall is likely to continue there is a high risk that the impact of high interest rates will start to get the upper hand next year particularly if the RBA hikes again and unemployment rises by more than expected.
- Price gains are expected to slow to 5% next year, but the risk of another leg down in prices next year is high.