Comments on: Why a rate rise will only take house prices higher

By: Damien

Damien — Thu, 01 Jan 1970 10:00:00 +0000

An interest rate rise “erodes the affordability” and negatively affects demand for both new and existing homes, it is the demand for rental properties that will increase in this environment.

By: John James

John James — Thu, 01 Jan 1970 10:00:00 +0000

Great Glen. I just wish you’d explained that to Labor before the election and Crikey had printed it. I just love watching Stephen Mayne and all the boys pleading with the RBA not to raise interest rates. Swan and Labor do not have the ticker or the skill

By: Van Hover00n

Van Hover00n — Thu, 01 Jan 1970 10:00:00 +0000

Maybe look at da statistics and money you find worlds rich (be fearful) have picked Os as a disarster destination and zear buying a little plot of insurance should zi shit hit zi fan.I wouldn’t take much buying pressure to up dis price.

By: John

John — Thu, 01 Jan 1970 10:00:00 +0000

This makes no sense. Interest rate shifts affect both new and existing homes. Your implication that new homes are more affected, causing an overwhealming substitution effect is extreme and unsupported, and wouldn’t increase the index anyway.