How are average house prices in most Western countries rising, even while interest rates are increasing?

Question

I’m a layman, not an expert by any means but wouldn’t interest rate increasing mean spending, including buying property, decrease? Would that not mean that house prices would fall to intice more spending?

I understand currently interest rates are normal zing or falling but hasn’t this been the case for many years now since COVID lockdown?

In: Economics

Answer 1

Higher interest rates often cool demand, but factors like housing supply shortages can continue to drive prices up.