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What do interest rate hikes mean for property prices?

With so many economic variables on the extreme of their normal trajectory, predicting the severity and duration of any impact on the property market is all the more challenging.

3D render of a graph depicting declining property prices.
Property prices are falling but so is affordability, as more income is required to meet rising borrowing costs.

Unprecedented is a word that got worn out during the coronavirus pandemic.

But in finance circles it’s back with a vengeance.

Interest rates are being lifted at an unprecedented pace. The same adjective has been applied to the fall that property prices may be facing.

The gap between wage growth and inflation? The proportion of borrowers living in the mortgage stress zone? Yep, that word again. Unprecedented.

But with the RBA again taking the …