Australia house prices climb in November amid record unaffordability, Cotality says
NegativeFinancial Markets
- Australian house prices continued to rise in November, as reported by Cotality, amidst a backdrop of record unaffordability. This trend is attributed to demand outpacing supply, which has significant implications for the housing market.
- The ongoing increase in home prices raises concerns about affordability for potential buyers, potentially exacerbating inflationary pressures. This situation complicates the Reserve Bank of Australia's (RBA) ability to lower interest rates, as higher prices may lead to sustained inflation.
- The rise in housing prices coincides with a recent increase in the Consumer Price Index (CPI) inflation, which has dampened expectations for interest rate cuts. Additionally, the Australian government plans to implement a cap on high debt-to-income home loans to mitigate risks associated with rising housing debt, indicating a proactive approach to stabilize the market.
— via World Pulse Now AI Editorial System
