Welcome to our September Newsletter
This season, home values continue to decline across the country, as cash rate hikes, tax rule changes, and geopolitical tensions continue to make waves across Australia. According to Cotality, 93% of capital city suburbs recorded price drops over the winter, meaning there could be new opportunities to discover.
As buyer demand softens, properties are sitting on the market longer and supply is growing. Across most capital cities, there are more homes on the market than there were a year ago, despite fewer new listings coming to market.
If you’re looking to purchase, getting pre-approved on your finance will help you feel more ready to jump in with an offer or bid with confidence.
Economists widely expect the Reserve Bank of Australia (RBA) to hike the cash rate this month, while some believe the central bank may hold out until November.
Inflation is continuing to ease, with the annual rate falling from 3.8% in June to 3.5% in July. However, the RBA’s preferred measure of underlying inflation remained unchanged at 3.6%, which is still above its target range of 2 to 3%.
At the same time, household spending rose more than expected in July, suggesting consumer demand remains resilient despite higher borrowing costs.
With the possibility of further rate rises ahead, it could be a good opportunity to review your mortgage and make sure you’re still on a competitive rate. Get in touch and we’ll compare options across the market for you.
The next cash rate decision will be announced on 29 September.
Australia’s property prices continued to fall in August, down 0.9% according to Cotality. Values are now 3.6% lower than the peak in March.
Sydney, Melbourne and Canberra saw the biggest declines, while all other capitals except Darwin experienced price falls.
The proportion of capital city suburbs recording a drop in home values more than doubled through winter, rising from 45.8% in autumn to 93%, highlighting a much broader weakening in housing conditions.
Cotality research director Tim Lawless said the latest figures showed the downturn was no longer confined to select markets or higher value segments.
“What started as a more concentrated easing across higher value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline,” he said.
“Sydney continues to lead the downturn. The combination of a sharp drop in demand and
higher than average advertised stock levels is weighing more heavily on Australia’s largest housing market.”
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 675 | 53% | 1465 | ▼ – 1.1% |
| NSW | 704 | 44% | 1476 | ▼ – 1.4% |
| ACT | 45 | 42% | 128 | ▼ – 1.1% |
| QLD | 216 | 24% | 936 | ▼ – 1.0% |
| WA | 19 | 11% | 469 | ▼ – 0.8% |
| NT | 5 | 20% | 24 | ▲ 0.6% |
| TAS | 1 | — | 139 | ▼ – 0.2% |
| SA | 106 | 41% | 311 | ▼ – 0.8% |
As the weather warms up, we’re likely to see listings heat up too. With prices coming down, now is the time to get your finance in order, so that you can strike quickly if you find a great property. Get in touch today.
