Macquarie's Rod Cornish forecasts price impairment arising from rate rises down the track
Macquarie Capital’s Rod Cornish suggests that interest rates look like staying low for longer than he'd originally thought - which may impact prices.
Without a rate rise, Sydney would reach the tipping point – where the strongly growing market would change – after another 15% price rise, he told the Australian Financial Review.
But he forecasts if rates were to rise 1%, perhaps in 2015, then that market change point would be hit after a 7% price rise.
"If rates were to rise 0.5%, the tipping point would be reached after a 10% house price rise," he said.