Another episode, thanks to research from Cookie, as we look at price reductions from the portals across Far North Queensland. Despite the massive spruiking we see a number of properties hanging around, and price reductions to match.
This not a scientific piece of analysis, and we do not know the story of single properties, but the trends are pretty clear. And we use data from our core market models to highlight the drivers.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
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The logic I hear all the time is the RBA won’t let home prices fall too far because of the financial stability risk consequences. But that view might be plain wrong.
First the RBA has lifted rates by 2.25 percentage points since May, and markets expect the cash rate to reach 3.3 per cent by the end of the year, before peaking at 3.9 per cent in April next year. RBA governor Philip Lowe said last week there was a “narrow path to a soft landing” for the Australian economy, which would be difficult to stay on if global economic conditions deteriorated.
And reflect on this. Within a 24-hour period this week, there will be 16 central bank decisions including the US, UK, Japan, Switzerland, Norway and Taiwan. Cumulatively, we could see over 500 bps in rate hikes across the globe this week.
In addition, Westpac came out yesterday with a revised forecast for the RBA Cash Rate, saying “We now expect the Reserve Bank Board to raise the cash rate by 50 basis points in October for a terminal rate of 3.6% by February (revised up from 3.35%)”.
It seems the RBA is giving the green light to home price falls. Because if prices fall you would need a smaller mortgage (even if the interest rates were higher). Let that sink in. Those who are arguing the RBA won’t be prepared to let home prices fall very far, take note!
Go to the Walk The World Universe at https://walktheworld.com.au/ Today’s post is brought to you by Ribbon Property Consultants. If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you. Buying property, is both challenging and adversarial. The vendor has a professional on their side. Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make. Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest. Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
My Monday chat with Edwin, which covers the latest numbers of property listings in Sydney, and our discussion is packed with insights about the market, and potential future trajectory.
Go to the Walk The World Universe at https://walktheworld.com.au/
Whilst the rate of interest rates rises is likely to ease ahead, eventually, as the RBA’s Jonathan Kearns, Head of Domestic Markets said today in a speech titled Interest Rates and the Property Market that there are important connections between property prices and interest.
He said interest rates both affect, and are influenced by the economic effects from, both residential and commercial property prices. We can be confident about some aspects of the impact of interest rates on property prices, but there is considerable uncertainty about other aspects.
Today’s post is brought to you by Ribbon Property Consultants. If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing alongside you. Buying property, is both challenging and adversarial. The vendor has a professional on their side. Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make. Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest. Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
More research on property price reductions, thanks to Cookie. This time we look at trends in Canberra where incomes are above average, but financial pressures are rising.
Go to the Walk The World Universe at https://walktheworld.com.au/
More examples of property price falls across southeast Queensland, thanks to research by Cookie, following our recent live show on property trends in Brisbane. This is not a scientific selected sample; they merely represent some of the falls being show on the property portals. The Gold Coast seems particulally prone.
Go to the Walk The World Universe at https://walktheworld.com.au/
Join me for a live discussion about the current state of the Brisbane property market with Meighan Wells the Principal of Property Pursuit and co-founder of the Home Buyer Academy and co-presenter of Your First Home Buyer Guide Podcast. In recognition of her expertise and high standards in the fast-growing buyer’s agency industry, Meighan was engaged to develop and deliver the education module for the REIQ course Acting as a Buyer’s Agent and is the former Chairman of the REIQ Buyers’ Agent Chapter.
You can ask a question live. We will look at recent price falls, as well as the latest from our modelling, including information at a post code level. Thanks to Cookie for his work on price falls!!
Go to the Walk The World Universe at https://walktheworld.com.au/
The REINZ has released their report for August 2022 today, and it’s a story of continued weakness across the housing market in New Zealand, which is unsurprising given the significant cash rate hikes imposed by the Reserve Bank there.
So today we will look at the data, and also highlight how the story is still being spun by the industry to try and turn a profoundly negative story positive. Well good luck with that, as the OCR is lifted higher still.
They report that across New Zealand, median prices for residential property (excluding sections) decreased 5.9% annually, from $850,000 in August 2021 to $800,000 in August 2022. Month-on-month, this represents a 1.2% decrease from $810,000 in July. The seasonally adjusted figures show a 2.1% decrease in the median price as we moved from July to August, suggesting weaker performance than expected.
The median residential property price for New Zealand excluding Auckland remained unchanged compared to last year at $700,000. There was a month-on-month decrease of 2.8% from $720,000. A better way to report that, is all gains from the past year have now been extinguished on average.
Today’s post is brought to you by Ribbon Property Consultants. If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you. Buying property, is both challenging and adversarial. The vendor has a professional on their side. Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make. Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest. Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
