What's really driving property prices

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.

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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.

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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.

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Property prices are being supported by:

-limited housing supply.

-ongoing population growth.

-constrained construction.

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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.

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