Property prices and rental crisis: the state of the property market
Many vendors are currently pulling houses from the market amid rising interest rates and cost of living.
Property expert from Ray White Real Estate David Walker joined Jim Wilson on Drive to explain the movements of the market.
“I think you’ll find … 25 per cent of people are probably not getting the same sort of interest that they would have got six months ago,” he said.
“So they’re deciding to take their time on the market and just put an asking price on it rather than run it to auction.”
“Its a really good time … for buyers to be looking at jumping into the market … at the moment buyers have a little bit more control.”
Mr Walker also gave his thoughts on the impact of rising interest rates will have on the market.
“You’ve got to have some perspective … ten years ago the cash rate was sitting at nearly five per cent … the market was actually a very good sellers market,” he said.
Press PLAY below to hear the full analysis
Economist Saul Eslake also joined Jim Wilson to talk about the rental crisis, and how proposed rental price caps could affect the market.
“My view, and I suspect the view of most economists would be that that rent controls will do more harm than good,” he said.
“They could make it worse by discouraging investment in housing if investors feel they can’t get a commercially acceptable rate of return.”
Mr Eslake also spoke about the need for the government to address housing supply by building or investing in more affordable housing.
Press PLAY below to hear more of Mr Eslake’s analysis of the rental crisis