Rising rates haven’t automatically led to falling property prices – and supply is a big reason why.
 
It’s easy to assume higher rates mean lower prices.
 
But the data tells a more complex story.
 
What’s happening now
  • National prices rose 0.7% in March (source: Cotality).
  • New listings increased 3.8% month-on-month (SQM Research).
  • But total listings are still 6.7% lower than a year ago.
That means supply is improving slightly – but still tight overall.

The bigger constraint

New construction isn’t keeping up.
 
Master Builders Australia has lowered its forecast for the amount of homes built over the five-year period of the National Housing Accord.
 
The reason? Labour shortages and cost pressures are slowing supply.
 
Property prices are being supported by:
  • limited housing supply.
  • ongoing population growth.
  • constrained construction.
So while growth may slow, a broad price decline isn’t guaranteed.
 
I can help you assess what this means for your borrowing power and whether now is the right time to act.