The RBA took the cash rate another 50 basis points higher at the September board meeting, citing ongoing inflationary pressures amidst a tightening labour market. The cash rate setting, at 2.35%, is now at the highest level since January 2015, but still slightly below the pre-COVID decade average of 2.56%. Housing markets have reacted negatively…
The 2021 property boom saw property prices rise at an unprecedented rate around the country, with house prices stealing the show, soaring 25.5% while units rose by a more modest 7.7%. But now the property market is cooling, prices are dropping from their peak, lending costs are soaring and demand is declining… and the trend…
New Zealand has provided Australia’s property experts with a test case this year, following the central bank’s decision to move early with rate rises in an effort to combat rising inflation and a runaway housing market. As one of the first developed economy nations to lift rates, the Reserve Bank of New Zealand (RBNZ) announced…
Melbourne and Canberra’s property markets have officially broken the $1 million mark for median house prices during the June quarter as a ‘perfect storm’ of factors continues to drive our property prices higher again across all capital cities. Australia’s national median house price has climbed exceptionally close to the million-dollar mark at $955,927 – which…
Australia’s top economists are divided about how to tackle ballooning inflation of 6.1% that’s forecast to climb to a three-decade high of 7.75% by the end of the year. Three of the 48 leading economists surveyed by the Economic Society of Australia and The Conversation say Australia should be able to tolerate an inflation rate…
Australia’s housing market has begun cooling from its peak, with rising interest rates, increasing inflation, higher construction costs, low vacancy rates, and increasing rental prices weighing on the market. There is a lot of discussion about how these various factors are affecting the housing market, but what about the apartment market? Analysis by Charter Keck…
Some investors have been spooked by the RBA hiking interest rates over the past months, particularly since it has spent the past two years telling us that rates would not rise until 2024. Higher interest rates at the same time as rising prices (inflation) are a two-fold blow to household budgets. Where are interest rates…
We all want to buy our new home or investment property at the lowest price possible. Or at least get good value for our money. And of course, the vendor wants the most he can get for his property, especially in today’s market where property values are strong. Yet you now know that the asking…
Is it time to lock in some or all of your loans into fixed rates? Or is it too late? Interest rates were at historic lows and clearly are on the way up now. The Reserve Bank has made it clear they’re going to increase the official cash rate a few more times till they…
As household balance sheets become more thinly stretched due to rising interest rates and high prices for essential goods such as fuel and food, there is a renewed level of focus on how mortgagors (i.e. homeowners with mortgage debt) are traversing the changing environment. Policymakers and lenders will be watchful for any signs of distress…
