Property market downturn won't help first home buyers, says housing expert | The Business | ABC NEWS

Описание: Three out of four of Australia's big banks have updated their forecasts, predicting back-to-back interest rate rises.
NAB, Commonwealth Bank and Westpac are forecasting the Reserve Bank will lift interest rates next week and again in May, while ANZ expects the RBA to hold at the next meeting, before lifting rates in May.
Housing market commentator Eliza Owen says higher interest rates will impact the demand side of the housing market, which she says is probably the desired effect from the RBA.
"Higher interest rates simply mean that people can borrow less, so that's less money to put towards housing," she tells The Business. "But it also means for renters with higher cost of living pressures and higher energy prices as a result of the oil price shock, there'll probably be more of a demand side response in the rental market as well."
But the former head of research at Cotality says if CBA, NAB and Westpac are correct, and the cash rate hits 4.35 per cent, a dip in the housing market won't be even, and impacts will be different around the country.
"If we look at the last time the cash rate was sitting around 4.35%, we did actually see the housing market had just gone through a short, sharp decline and house prices fell in response to successive rate rises," she says. "I think this time around, it may be offset by ongoing strength in WA and Queensland, but I think you would just expect to see a bit more of a substantial dip across markets like Sydney and Melbourne, where the economic fundamentals are a little bit weaker."
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