Household budgets are feeling the pinch of a seventh successive rate rise. The Reserve Bank of Australia (RBA) increased the cash rate to 2.85 per cent this month, prompting some lenders to increase their variable rates by 0.25 percentage points.
Home values are predicted to decline by as much as 20 per cent, losing much of the gains made during the pandemic. However, there are still suburbs in every city presenting opportunities for buyers.
In the market to buy? Make sure you speak to us about a pre-approval to help you move quickly on your preferred property before the end of the year.
Concerned about higher mortgage repayments or want to know how your loan compares? Talk to us. We’re here to help.
Home value movements
Higher interest rates and falling housing affordability is having an impact on house prices which are tipped to fall by a whopping 20 per cent in Sydney in the next year, a new forecast by Me Bank has found.
But some industry insiders are citing the fall as a ‘correction’ that tends to happen after a period of sharp growth.
And we have seen stellar growth, up to 30 per cent, over the pandemic.
Melbourne and Canberra are predicted to see price slumps of 15 per cent. Brisbane house prices could also drop as much as 15 per cent – nearly double what was previously predicted.
Here’s a snapshot of home values by state.
* Monthly Home Values figures as of 31 October 2022
* Australian auction results, clearance rates and recent sales for the week ending 30 October 2022
* The clearance rate is preliminary and current as of 10:00 am AEDT, 1 November 2022
There are still bargains to be found thanks to falling property values. If you’re ready to buy, talk to us about the right home loan for your needs.