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Interest rate cuts and demand lead to continued rise in nominal house prices


MONEYWEB
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Residential agents are recording record numbers of house sales across many towns and cities.
By Michael Brown
21 Dec 2020 
00:01 
Image: Shutterstock
Nominal house prices continued to rise in the fourth quarter. Property economists Rode & Associates ascribe this to pent-up demand which was boosted by record low interest rates.
House prices grew 1.8% during the first 10 months of this year compared with the same period in 2019. Kobus Lamprecht, head of research at Rode & Associates, says in the report this implies the full-year price growth will slow for the sixth consecutive year in nominal terms.
In addition, this led to property prices declining in real terms, after stripping away inflation which has averaged 3.3% this year. ....

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