More than half of the country is currently experiencing a decline in property values.
This is according to a suburban-level analysis from PropTrack for The Australian.
The biggest declines in Sydney in the June quarter were homes in Mulgoa, Sydney’s west (-22.72%), units in Taren Point, Sydney’s south (-22.11%) ) and Manly units (-20.44%).
In Melbourne, these were houses in Dandenong South in the South East (-20.86%), houses in Red Hill (-20.36%) and houses in Flinders (-19.34%), both located in the Mornington Peninsula.
PropTrack economics research director Cameron Kusher said the real estate market in Sydney and Melbourne had already slowed before interest rates rose in May.
“Interest rates have risen 1.25% in three months,” he said. The Australian.
“That means people can’t borrow as much as they could. And if rates hit 2.5%, as expected, it will significantly reduce people’s ability to pay the prices people are looking for in those markets.
In Hobart, data showed that units at Battery Point, just south of the CBD, fell the most in the June quarter (-20.58%).
In Adelaide, these were units in the coastal suburbs of Hove and Grange (-16.14%).
Units in the Canberra suburb of Watson were down -22.89%, the largest of the capitals, and Griffith homes were down -22.42%.
Homes in Perth’s affluent suburb Peppermint Grove fell -13.34%.
Homes in Larrakeyah, an inner suburb of Darwin, were down -20.60, and units in Birkdale, Brisbane were down -22.69%.
Australia’s big four banks unanimously expect interest rates to rise for borrowers after Westpac and NAB updated their cash rate forecasts.
Westpac, NAB, ANZ and the Commonwealth Bank of Australia all forecast two 0.50 percentage point hikes in August and September, which means four consecutive months of 50% increases.
NAB now expects the cash rate to be at 2.85% by November, while Westpac expects it to reach 3.35% by February next year.
That means someone who had a $500,000 NAB mortgage before the hikes started could pay $760 more on their monthly repayments, while monthly repayments on a $500,000 Westpac mortgage could go up by $908. from May 2022 to February next year.
Although home prices are down nationwide, the cost of renting certainly isn’t.
Rental prices rose at the fastest pace in seven years in the year to June, according to PropTrack’s latest report.
Weekly rental prices jumped 7% in the year to June. The number of potential tenants per listing increased by 20.3%.
Total rental listing volume was down 18.2% year-over-year, down to 27.7% below its 10-year average.