WHAT DRIVES PRICE GROWTH ?
There are many ways to measure price growth , and the performance of Australian house prices are either declining , or starting to see a more sustainable rate of growth depending on what method you use . Nevertheless , we ’ re clearly in a new cycle where the red hot market of 2021 has come to an end . Median house prices have increased by 3.4 per cent in the first five months of this year but this is a distinct slow down from the 9.8 per cent increase experienced in the final five months of 2021 .
While the end of ultra low interest rates are clearly a factor driving this current slow down , it ’ s now timely to have a look at what drives house prices as this will determine how much of a market change we ’ re in for .
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