Lowering interest rates could see a spike in home prices
REA Group Senior Economist Angus Moore has weighed in on how the expectation the RBA will cut the cash rate will influence house prices.
“As interest rates come down, that lowers financing cost,” Mr Moore told Sky News Business Editor Ross Greenwood.
“But also, typically speaking, when interest rates comes down, we see home prices go up as well.
“Both those things help make new home builds a bit more viable for developers.”
In partnership with REA.
