Australian Housing Prices Set to Slide Amid Rising Interest Rates

Australia's real estate market is facing similar challenges to its neighboring countries, Canada and New Zealand. According to Reuters, both economies have seen a decline in housing prices over the past four years.

The report notes that Canadian housing prices took an earlier hit during COVID, with prices now on the slide here it's likely Australia will follow suit. The reasons behind this decline include a dismal housing supply, increasing cost of building due to inflation, and rising interest rates as borrowing continues to grow.

John Blackbourn suggests that buyers are holding off until prices reduce, citing a lack of political will to address these issues. He compares Australia's economic cycle to Canada and New Zealand, which have reacted faster to market changes than Australia in the past.