Graph reveals why Australia is in trouble

House prices in Australia continue to plummet — but while most Australians wanted prices to fall, not everyone is happy about it.

Housing affordability is still a major issue, with the Reserve Bank of Australia’s monetary policy board just agreeing to lift Australia’s cash rate by a further 25 basis points to 4.60 per cent.

Mortgage holders have been warned they face further rate hikes after the Reserve Bank raised the official cash rate to a 15-year high, saying it was necessary to rein in high inflation that “hurts all Australians”.

RBA governor Michele Bullock said she understood the hike decision was “tough” for mortgage holders, but if inflation wasn’t lowered, interest rates would need to go even higher.

Inflation is sitting at 3.5 per cent, above the target range of 2-3 per cent.

So if house prices are coming down, why aren’t everyday Australians feeling relief? Here’s a breakdown of what’s going on in Australia’s housing market, what to expect next, and how long we can expect Australia’s housing crisis to last.

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