9News: Property Price Slump

Deborah Knight: Australian home owners are facing a wealth squeeze as mortgage interest rates are likely to keep rising, even as home values fall. 

Normally when house prices come down, the Reserve Bank responds by cutting interest rates…but not this time. 

Ross Greenwood: Rates up, houses down. In September, home values fell in five of our eight capital cities. 

The problem is the downward trend in Sydney and Melbourne, where prices have fallen the most. And they’re expected to keep on sliding. 

Tim Lawless: With mortgage rates edging a little bit higher now, it does suggest there is a further damping effect on the market. 

Daniel Gradwell: Its not surprise to us that house prices are falling at the moment. We think that its quite a bit further to go actually. 

Ross: Sydney house prices fell another 0.8 percent last month. The annual fall is now more than 7.5 per cent, or around $80,000. The median price is now $976,000. 

And as banks become more cautious, in the wake of the Royal Commission, things could get worse as borrowing money becomes tougher. 

Tim: The big driven of the slow down is, of course, credit conditions. We are not expecting credit conditions to ease up at all. 

Ross: So, the government is urging banks not to continue raising interest rates out of step with the Reserve Bank, because they know, if the property market falls apart completely…it will undo otherwise strong economic conditions. 

Josh Frydenberg: While we understand the cost of credit sometimes puts upward pressure, we don’t expect them to be putting it up anytime soon. 

Daniel: We do think if everything continues along this pathway, we think the RBA will start to raise interest rates around this time next year. 

Ross: For our national economy, one problem is the pace of prices falling in our two largest cities. 

Tim: That starts to effect overall household wealth 

Ross: Ross Greenwood, Nine News 

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Interviewed –Daniel Gradwell, Senior Economist, ANZ Banktitled –What does the property prices slump mean?

Interviewed –Cameron Kusher, Senior Researcher, Corelogic RP Datatitled –Will property prices keep falling?

Interviewed –Chris Richardson, Chief Economist, Deloitte Access Economicstitled –Is the Royal Commission affecting property prices?

Interviewed –Tim Lawless, Head of Research, Corelogic RP Datatitled –Property gains over the second quarter of 2017 is losing steam

Interviewed –Scott Cam, Host, The Blocktitled –Is the Property Market all about timing?

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Interviewed –Tim Lawless, Head of Research, Corelogic RP Datatitled –Two-tier property market

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Interviewed –Dr Andrew Leigh, Assistant Treasurer, Shadowtitled –What will happen to property market if Labor win election?

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