Australian property market slows as vendors hold off for the summer holidays | Kanebridge News
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Australian property market slows as vendors hold off for the summer holidays

It’s beginning to look a lot like Christmas, as auction listings ease off ahead of the holiday season.

By KANEBRIDGE NEWS
Thu, Dec 15, 2022 11:02amGrey Clock < 1 min

Vendors may be holding off as December comes to a close, with auction listings falling more than -12 percent across the country, CoreLogic reports.

There are 2,373 properties scheduled to go to market this weekend, down from 2,717 last week, representing a -12.7 percent decrease. It is also -50.4 percent less than this time last year when 4,783 homes went under the hammer.

Melbourne once again leads the way, with 1,053 properties listed for auction, while in Sydney, 827 will be put to market. Those figures are more than -14 percent lower than the previous week for both capitals.

Brisbane will actually see an increase in activity this weekend, with 185 homes listed compared with 180 the previous week. In Adelaide, the 178 properties put to market represent a -6.8 percent fall week-on-week. Perth is faring better, with 25 home going to auction, up from 12 the previous week. Tasmania is the only state to record higher auction numbers compared with this time last year, with five properties scheduled this weekend, rather than three last year.

The market is set to slow down even more during Christmas week, with CoreLogic reporting  just 380 homes scheduled to go to auction at this stage.  

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Amid looming rate rises, there are reasons to be cheerful as mortgage holders head into 2023

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Mon, Feb 6, 2023 2 min

Mortgage holders should brace themselves for more pain as the Reserve Bank of Australia board prepares to meet tomorrow for the first time this year.

Most economists and the major banks are predicting a rise of 25 basis points will be announced, although the Commonwealth Bank suggests that the RBA may take the unusual step of a 40 basis point rise to bring the interest rate up to a more conventional 3.5 percent. This would allow the RBA to step back from further rate rises for the next few months as it assesses the impact of tightening monetary policy on the economy.

The decision by the RBA board to make consecutive rate rises since April last year is an attempt to wrestle inflation down to a more manageable 3 or 4 percent. The Australian Bureau of Statistics reports that the inflation rate rose to 7.8 percent over the December quarter, the highest it has been since 1990, reflected in higher prices for food, fuel and construction.

Higher interest rates have coincided with falling home values, which Ray White chief economist Nerida Conisbee says are down 6.1 percent in capital cities since peaking in March 2022. The pain has been greatest in Sydney, where prices have dropped 10.8 percent since February last year. Melbourne and Canberra recorded similar, albeit smaller falls, while capitals like Adelaide, which saw property prices fall 1.8 percent, are less affected.

Although prices may continue to decline, Ms Conisbee (below) said there are signs the pace is slowing and that inflation has peaked.

“December inflation came in at 7.8 per cent with construction, travel and electricity costs being the biggest drivers. It is likely that we are now at peak,” Ms Conisbee said. 

“Many of the drivers of high prices are starting to be resolved. Shipping costs are now down almost 90 per cent from their October 2021 peak (as measured by the Baltic Dry Index), while crude oil prices have almost halved from March 2022. China is back open and international migration has started up again. 

“Even construction costs look like they are close to plateau. Importantly, US inflation has pulled back from its peak of 9.1 per cent in June to 6.5 per cent in December, with many of the drivers of inflation in this country similar to Australia.”

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