House prices will start to cool from 2017 as more new properties become available to buy amid an expected rise in interest rates, economic forecaster BIS Shrapnel says.
The forecaster says with the Reserve Bank expected to lift its cash rate by about 50 basis points, the heat should come out of the booming Sydney and Melbourne markets.
It also expects that with work started on a record 210,000 new dwellings during 2014/15 and another 200,000 next financial year, all states except NSW will experience an oversupply of properties.
Share
