There is finally some good news on the horizon for those wondering if mortgage rates will fall in Australia – they will, but not yet, a property expert says.
Lloyd Edge, an investor with a multi-million dollar portfolio of houses across the country, expects interest rates to start dropping from the middle of next year.
In a tip of more immediate use to those looking at the property market, Mr Edge also does not expect there to be any more rate rises between now and mid-2024.
Mr Edge noted interest rates increased to tackle high inflation, but that the cost of living ‘came down to around just over 5 per cent in the last month, as opposed to 7 or 8 per cent as it was earlier in the year.
‘So with inflation being more under control, there’s no reason for them to keep interest rates going up,’ he claimed to Daily Mail Australia – although some major banks warned this week that another hike could come next month.
Australian property market: ‘A buyer’s market’…for now
In surveying the landscape of the property market, Mr Edge said most of 2023 has been a ‘buyer’s market, so things have been quite subdued, with interest rates increasing.
‘That’s been putting sellers off (leading to a) lack of lack of stock on the market.
‘There’s a lot of buyers around but they’re just watching on the interest rates, which, for the last four months, have been put on hold.’
But the investor said the likelihood of interest rates starting to come down in the second half of 2024 has led to increased prices in many areas.
‘We’ve had about four months of