How have Australian housing prices fared in July?
Housing prices have been increasing at a diminishing rate in Australia. The continued surge in prices is being tagged as unsustainable. Increased deflationary pressures could potentially push up inter
The year has seen over ten lockdowns in the country, but property prices seem to be unaffected. This is contrasting to last year's scenario where prices plummeted as the lockdowns spanned over four months.
Several factors contributed to a strong rally in the housing market until July. Then, the Delta variant fanned anxiety in the market, and the pace of growth began to slowdown, while it continued to remain positive.
What invited the price surge in the housing market?
Globally economies are employing measures to stimulate economic activities to bring about economic recovery. Stimulus packages are leading to an increase in general price levels in the economy. The Australian economy has maintained low cash rates at 0.10% since November last year.
Multiple measures like low interest rates caused the boom in the Australian housing market. Other factors included an increase in the repayment period window, home guarantee related benefits for single parents and eased upper limit on the number of people eligible for first-timer home loan benefits.
All these factors contributed to a rally in the housing market until July. The Delta variant fueled anxiety in the market, posing as a major roadblock in the growth of the housing sector.
What is the current scenario in the housing market?
Even with the historically strictest lockdowns that the country witnessed since 2020, the housing prices continue to motor ahead.
Read more: Real Estate Stocks