I don’t know about your country. But in mine prices of property has not followed population growth, increased income or really anything that would make this growth sustainable. It has been a product of central banks setting way too low interest rates (and to a part lacking regulations).
Interest rates don’t really matter as much as you might think. Yes as rates go down the price a house sells for goes up. But the monthly payment stats the same as that’s how people buy houses. They figure out what they can spend easy month in principal, interest, and taxes and then shop and bid in the places they want to live, which almost always aligns with how much they can spend.
Rising interest rates are good for cash buyers and banks.
Are actually rising rates good for banks? Didn't SVB fail due to rising rates? And the other banks might also have issues. They got deposits. They lend out money, but they locked the loans to certain rate. Now the depositors can get better offers from elsewhere, but they can't always renegotiate the old rates. Thus they end up with possibly losing the deposits.
