The property slowdown is hiding a much bigger housing crisis
Falling auction clearances and weaker price growth may suggest demand is cooling, but the real issue is worsening affordability, limited supply and buyers increasingly locked out of the market.
Falling property prices in some markets are doing little to improve affordability as higher interest rates and borrowing constraints continue to lock buyers out. (Image source: ChameleonsEye/Shutterstock.com)
Recent commentary on the real estate market has referenced an increase in demand-side headwinds.
Certainly, sentiment is down. This is being reflected, to a significant extent, in lower auction clearance rates. It’s also being reflected in prices, which are failing slightly in some markets. Buyers are exercising extreme caution and this is being reflected in subdued transaction activity.
Interest rates
are at the heart of this shift. Three cons…
