Iran War Impacts Home Prices, Inflation Soars

0:00The war in Iran is hitting home prices hard, with Westpac warning that building a new suburban house could cost 10% more, or about 50, $1,000 extra. Oil prices are still hovering around $97.00 a barrel, even after this week's ceasefire, and that's pushing up costs for suppliers across the board. Suppliers are already jacking up prices on building materials by up to 16% for some items, and the number of hikes is climbing fast. Oil and diesel have jumped nearly 50% since early March, despite the government's move to have fuel excise, which cuts 32 cents. A leader, businesses from restaurants to salons are slapping on fuel levies to cover it, and everyday folks are feeling the pinch on everything from meals to haircuts. The Housing Industry Association pushes back, though, saying new home costs are only up $3,000 to $4,000 so far. Just like those at Commonwealth Bank, see inflation spiking to 6% next month, easing

1:00to $4.7 by Christmas shopping. They warn, if the straight-of-horn moves stays tricky, it could spread to food, clothes, and housing, maybe forcing the reserve bank into more rate hikes. Home buyer interest stays strong, despite back-to-back rises, but groups like master builders say fixed contracts mean builders eat the costs. With the budget looming on May 12th, watch for tax tweaks that could pile on even more pressure to an already squeezed market. Sydney News Today, powered by AI bringing you what matters.