Rising interest rates could prompt wave of forced sales, further hitting house prices. This has also led to new listings collapsing and sellers unwilling to reduce their prices to the level of many other companies. The real estate company, McGrath has reported an 83% drop in net profit for the next six months, due to the poor spring season. This significant drop has been predicted by reduced sale volumes. The owner of the company predicts rising house prices in 2024, and remarks on the need for a ‘breather’ after the rapid growth of the past 3 years. The pullback in listings started last year amid a series of cash rate increases by the Reserve Bank that led to higher mortgage rates. After a sharp run-up in prices in recent years, national home values have slid by 7.2% in the past 12 months, led by a 13.8% fall in Sydney
Will the international market spark any differences in the local UK economy?