Opinion
House prices could fall as much as 20pc after rate increases
Even 100 basis points of increases would have profound consequences for asset pricing, and house prices could correct about 15 to 25 per cent.
Christopher JoyeColumnistThe normalisation of Australian inflation, and the Reserve Bank of Australia’s cash rate with it, is a game changer for everything – equities, bonds, house prices and portfolio construction.
Everyone needs to go back to first principles and re-evaluate their decisioning juxtaposed against a world in which short- and long-term interest rates could be a lot higher.
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