What do super-sized interest rate rises mean for the property downturn?
Rapid interest rate hikes have pushed property prices down faster than expected, speeding up price falls in Sydney and Melbourne, and pushing other areas towards a downturn sooner.
In the past, interest rates often moved by only 0.25 percentage points a month, but over the last three months the hikes have been double that size, and experts say the speed and size of the moves have accelerated property price falls.
In total, interest rates have shot up 1.75 percentage points since early May. Economists said that if rates had increased at a more gradual pace, property prices would still likely have fallen the same amount, but over a longer period.
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