Borrowing Power & House Prices in 2023: What Happened to Break the Correlation?

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We deep dive into 2023 - house prices increased by nearly double digits YET borrowing powers fell by nearly 10%.

Why? What happened in 2023 and why did prices rise when credit availability came down?

This means that more and more purchases were made with larger deposits & to higher income Aussie's.

We unpack a few key factors:
1. The 'Bank of Mum & Dad' increasing in size and influence.
2. The massive wealth increase that occured between 2019-2022 creating a 'second wave' impact to property prices
3. Strong fundamentals

All of these explanations help unpack our next episode, where we deep dive into future borrowing power modelling over 2024-2025.

Reach out to us at www.australianpropertytalk.com.au