Source:
https://scmp.com/property/international/article/1123105/australia-home-prices-may-see-rise-10pc
Property/ International

Australia home prices may see rise by up to 10pc

Flagging sector is poised for boost if reserve bank cuts interest level by a quarter point

The Reserve Bank of Australia has cut the cash rate by 1.75 percentage points since November 2011 to match a 50-year low. Photo: Reuters

Australia's flagging property market is poised to get a boost from record low interest rates and a housing shortage that could increase prices by as much as 10 per cent this year.

The Reserve Bank of Australia has cut the cash rate by 1.75 percentage points since November 2011 to match a 50-year low, which has helped cut standard variable mortgage costs to 6.65 per cent in November, the lowest in almost two years, central bank data show. Traders are betting on a 50 per cent chance the central bank will drop the rate a quarter point to 2.75 per cent by March, interest-rate swap prices compiled by Bloomberg show.