National Prices Rise as the RBA Announces a Further Cash Rate Rise
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
This week, the RBA announced another cash rate rise of -0.25%. Even though most experts and the Big 4 Banks predicted another hold on the cash rat this wasn’t the case. This is now the 11th cash rate increase since May 2022, taking the current rate to 3.85%. Clearly, this will put more financial pressure on households as they manage the increase in mortgage repayments. On a positive note, it looks like the bottom of the market is behind us. The national property price index fell -9.1% over the 12 months to February 2023, yet in the past two months property prices have risen. CoreLogic has reported a 1% increase in national property prices over the last few months. The positive move in housing values is largely attributed to a worsening imbalance between supply and demand.
Even with a shortage in housing availability and rising interest rates, we are seeing prices rise. Sellers hold on, with many having fixed their interest rates early on when rates started to rise, and now buyers who are trying to time the bottom of the market are jumping back in. Charts provided by CoreLogic show that new listings in the four weeks to April 23rd are down -22.9% on this time last year and -14.3% below the five-year average. And total listings are down -9.7% on this time last year and -21.8% below the five-year average. Typically, in a slower market, you would see total listings balloon as time on the market extends, however, this is not being heavily noticed. This indicates to me that properties are still selling in reasonable time frames. Buyers are showing frustration with the lack of availability and choice. And we are seeing character homes or A-grade homes, that present good value, still being snapped up relatively quickly.
In regional Queensland property prices were up 0.8% over the month of April. This is heavily driven by higher price gains being achieved in northern coastal areas with the likes of Rockhampton, Mackay and Cairns reporting monthly gains of 4% and above. Buyers and investors alike showing greater interest in these areas due to relative affordability and ROI. For those who are looking to sell, right now is an opportune time while property availability is low. It means less competition. Prices are still above the market average of two years ago, so you can confidently assure you’ll be achieving a great price should you decide to sell now. Buyers are eager, and within the first few weeks of a house being listed for sale offers are coming in. We will see a stabilising market over the next 3 to 6 months with homes for sale still achieving great outcomes.
AUCTION CLEARANCE RATES
- Queensland – 39% (281/1006)
- NSW – 59% (769/1319)
- Victoria – 67% (791/1002)
- ACT – 54% (59/84)
- South Australia – 70% (142/297)
- Tasmania – 25% (4/137)
- Western Australia – 40% (15/699)
- Northern Territory – NA (4/12)
*(Auctions/Private Sales)
REVIEW(S) OF THE WEEK
Leigh was great from the start!
Gave us a lot of information to consider and we never felt pressured in any way. He delivered everything he promised. We sold within a week. His negotiation and discussions with the buyer bought excellent results. We trust him and would certainly use him again. A real good guy. – Seller
Committed and Determined
Leigh and his team were committed to getting us the result we were after. The right mix of hard-working and easy-going. – Seller
