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Rising rates force down property prices

Making headlines today, The Sydney Morning Herald has reported that residents of Sydney's inner west are lowering the asking price on their home by up to 6.3 per cent in order to achieve a quick sale.

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The threat of rising rates has caused the median house price to drop 2.07 per cent over the past three months.

This drop eclipses the 1.9 per cent quarterly fall recorded at the heart of the GFC.

But the news is not all bad. According to Residex chief executive John Edwards, house prices are still expected to climb year on year.

Median house prices remain high at $663,000 with an expected growth rate of 3.22 per cent per annum over the next five years, Mr Edwards said.

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