Australia's Housing Market Braces for Prolonged Price Falls Amidst Cash Rate Hike

Australia's housing market is bracing for prolonged price falls after the Reserve Bank raised the cash rate to 4.6 per cent, reducing the average homebuyer's borrowing capacity by $90,000.

The Reserve Bank of Australia has elevated the national cash rate to its highest level in nearly 15 years, marking the fourth rate increase this year.

According to Cotality data, prospective homebuyers have seen their maximum borrowing capacity plummet by approximately $90,000 compared to February levels.

Economists forecast that house prices are now highly likely to fall further and for a more extended duration than they have during previous property market downturns.