Australian house prices increase, coinciding with high debt levels and straining businesses due to higher interest rates.
Australian house prices have significantly increased since the pandemic, coinciding with high debt levels. With a 20% debt servicing level, only Norway has a higher rate. The rapid growth in real estate has led to economic strain, with businesses defaulting on loans due to higher interest rates. Economists predict official interest rates in Australia will start falling in the second half of this year, potentially easing pressure on the property market, which is currently near record affordability levels.
April 16, 2024
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