Sydney and Melbourne Real Estate Profts Plummet

than double the 5.3% average national drop, while Melbourne prices slid by 8.1%.

This trend is also evident in other countries where interest rates are rising, with house prices falling and listings dropping across the UK. Pellegrino said the business was prepped for demand to return, asserting that “history has shown that we can be confdent these listings have not disappeared”. He went on to state that “it’s only a matter of time for confdence to recover and support the inevitable bounce back in market listings”.

The Reserve Bank has fagged that rate hikes likely have further to run given infation remains too high, with nine consecutive rate increases so far. The lack of new homes on the market is having a signifcant effect on the profts of real estate companies, as well as on the property market as a whole. To prevent this from continuing to weigh on the market, it is essential that confdence is restored, and people are encouraged to list their homes for sale. It is also necessary for the government to continue to stimulate the economy and make it more attractive for people to invest in properties. In addition, the Reserve Bank must consider the effect that their rate hikes are having on the market. As long as the rate hikes remain in place, the cost of borrowing money to invest in properties will remain high, making it much less appealing for people to do so.

Ultimately, it is essential for the Reserve Bank to consider the market implications of their rate hikes in order to ensure that the housing market can begin to recover.