Why homes could get cheaper, but less affordable
STORY: The global property market could be set to go cold
Real estate prices jumped as much as 50% in some countries during the health crisis
Now economists polled by Reuters predict prices will fall in 2023
But a majority say that won’t make homes more affordable for first-time buyers
That's because rising interest rates are expected to make mortgages more costly
Liam Bailey, global head of research, Knight Frank:
"Your purchase price may be reduced ... but actually the cost of servicing a loan may not actually decline along with that price.”
Inflation may also outpace wage gains, making it harder to save for a deposit
Renters could fare even worse, with properties in short supply
Over 80% of analysts polled predict they will see affordability get worse