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