SLOWING DOWN A HOT MARKET
Dec 03, 2020
3 minutes
Whilst low interest rates are a major catalyst for increasing house prices, it fundamentally comes down to a supply side issue that many countries haven’t solved, including ours.
Scarcity drives competition. It seems so simple, but house prices are a function of mortgage rates and borrowers being prepared to spend about 40%-45% of their after-tax income on a place to live.
When incomes go up and mortgage rates drop, you have
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