Some quick maths on the effect of interest rates on house prices, supporting a forecast 10-15% drop in prices

[amelia97]

@stthomasmore

So basically at worst return to 2019 prices

Assuming there's no recession, and assuming rates don't go higher than expected

 

[jesuslover07]

@stthomasmore The "cash rate to 12%, all else equal" scenario was picked to roughly match what would be required to match his prediction which would be a 60% drop by now. Yeah - not gonna happen.

 

[stthomasmore]

@jesuslover07 Absolutely no way we would get to 12%

And if we did house prices would be the least of everyone's concerns (out of control inflation)

 

[joshslusser]

@stthomasmore How about 10%? What's the absolute highest you think they can go? Never say never imo