Australian home prices up on supply shortfall, but at risk from high rates

Dr Shane Oliver, Head of Investment Strategy & Chief Economist insights

Australian home prices rose again in October, with the supply shortfall on the back of record immigration dominating. Prices are now on track for a 9% gain this year.

While the supply shortfall is likely to continue there is a high risk that the impact of high interest rates will start to get

the upper hand next year particularly if the RBA hikes again

and unemployment rises by more than expected.