SQM Research’s Boom and Bust report forecasts that the housing market could rebound if the Reserve Bank of Australia (RBA) puts interest rate increases on hold. The central bank is widely tipped to pause the rate rise cycle by mid-2023 and leave the cash rate unchanged for the rest of the year. SQM Managing Director, Louis Christopher, says this could potentially spark a ‘soft’ housing market recovery. House prices in Sydney could rise by 5%-9% per cent in 2023, although other capital cities would most likely record more subdued growth in dwelling prices. Then 2024 will register a solid rebound on the back of falling mortgage rates, strong immigration, constrained supply, etc.
