Where house prices could be in two years if economists are right

Where would property prices be if they rise a little further and then fall slightly over the next couple of years, as economists expect?

Home prices could end up close to current levels or back at the same level as last year, but with the kicker that mortgage repayments will be more expensive.

Once the Reserve Bank lifts the cash rate – perhaps as early as June or as late as 2023 – home buyers will be able to borrow less, which could constrain how much they can bid at auction and push prices down.

The forecasts come after home values soared in the pandemic, as locked-down buyers armed with crisis-era interest rates chased more spacious accommodation to work from home.

Read More: https://www.smh.com.au/property/news/where-house-prices-could-be-in-two-years-if-economists-forecasts-are-right-20220218-p59xn7.html