Property prices drop further as homeowners stare down another rate hike

Home values have kept sliding following the latest interest rate rise from the RBA, with borrowers bracing for another hike as inflation refuses to go away.Australia’s national median home price declined by 0.3% in October, with prices now 4.3% below the peak reached in March, according to the latest realestate.com.au Home Price Report.October’s price falls follow the decision by the Reserve Bank in late September to raise interest rates for a fourth time this year, taking the cash rate to the highest level it’s been in 15 years.Property prices nationally have been falling since the RBA started raising interest rates earlier this year, pushing through three back-to-back rate rises in February, March and May in a bid to halt resurgent inflation, followed by September’s hike.Home price in Sydney have been falling for almost a year. Picture: GettyThe rate rises have coincided with the introduction of major new tax changes in the federal budget aimed at cooling investor demand by ending negative gearing tax break for established properties and scrapping the 50% capital gains tax discount.REA Group senior economist Eleanor Creagh said there were more homes on the market in recent months...