Australian national house prices have dropped for the first time in nearly two years as economists said rising interest rates started to impact the housing market.
The CoreLogic home value index dipped by 0.1 percent in May, the first fall recorded since September 2020. This was attributed to the monthly losses in Sydney and Melbourne-Australia’s two most significant real estate markets.
At the national level, prices were still 14.1 percent higher than a year earlier.
“The main reason house prices rose so much was because of record low-interest rates,” Centre for Independent Studies chief economist Peter Tulip told The Epoch Times.
“This process is now going into reverse, with rising interest rates leading to falling house prices.”…