Interest rate talk
There is a lot of talk about interest rates rising and what this will mean to the real estate market. Firstly, I’d like to say we are in a different position to the US and NZ markets where interest rates are going up shortly in the case of the US...
There is a lot of talk about interest rates rising and what this will mean to the real estate market.
Firstly, I’d like to say we are in a different position to the US and NZ markets where interest rates are going up shortly in the case of the US and have already started rising in NZ. The US has rampant inflation and NZ had a crazy housing market that needed cooling. In comparison to Australia our inflation is still within the RBA’s target range and the housing market has not been as crazy as NZ. So, we are different and won’t necessarily follow these markets.
However, there is only one direction rates can go from here and that is up, so borrowers and the real estate market will need to be prepared for the inevitable when it happens, albeit late 2022 or 2023.
