Forecast for interest rates and property prices

Global economies are still very uncertain at the moment, so I would expect a slowing of interest rate rises by the Reserve Bank. 

 In terms of property prices, in my opinion, we are reaching a level of interest rates which is starting to have a negative impact on property prices.  We are also seeing the ending of various government stimulus which have supported market growth.

 Despite this, the Australian Property market still has good fundamentals in terms of strong population growth, rising incomes, a shortage of affordable housing and a firm labour market.  Based on this I would expect home prices to increase in the 5 to 10 per cent in 2010 

Global economies are still very uncertain at the moment, so I would expect a slowing of interest rate rises by the Reserve Bank. 

In terms of property prices, in my opinion, we are reaching a level of interest rates which is starting to have a negative impact on property prices.  We are also seeing the ending of various government stimulus which have supported market growth.  

Despite this, the Australian Property market still has good fundamentals in terms of strong population growth, rising incomes, a shortage of affordable housing and a firm labour market.  Based on this I would expect home prices to increase in the 5 to 10 per cent in 2010

Forecast for interest rates and property prices

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