Shaky property markets across much of the world pose another risk to the global economy as higher interest rates erode household finances and threaten to exacerbate falling prices.
Australian Prudential Regulation Authority chairman John Lonsdale says he is open to changing bank rules on home loans if the economy deteriorates to ensure banks do not ‘‘choke off’’ credit and make the fall in house prices worse.
Property Talk about prices hitting bottom may be optimistic. Predictions that the housing market will soon bottom out are premature because the worst effects of higher interest rates are yet to come.
As 2022 draws to a close we are reminded of the recent period of intense volatility in capital markets and the reality that a global recession is likely next year.
Property Talk about prices hitting bottom may be optimistic. Predictions that the housing market will soon bottom out are premature because the worst effects of higher interest rates are yet to come.
JB Hi-Fi ultimately proved to be one of the COVID-19 winners even though its share price was trashed at the start of the pandemic when a heavy sell-off across the broader sharemarket meant it lost 40 per cent of its value.
Australia’s public purse missed out on $64 billion last year in tax revenue foregone due to the capital gains tax exemption on the principal place of residence.
Thanks to the Reserve Bank of Australia’s extraordinary decision to hammer unsuspecting households with 125 basis points of mortgage rate increases in just two months (from May 4 to July 6).
