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The housing market is showing signs of cooling with prices going backwards in the nation's biggest cities. Nationally, values are still rising despite Sydney and Melbourne entering the early stages of a downturn driven by rising inflation and higher interest rates.

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00:07While this property was snapped up, selling homes in the nation's biggest city is getting
00:12harder.
00:13What you're looking at is no affordable housing at all now.
00:17I think it's going downwards.
00:19Buyers are stretched.
00:20We're seeing a little bit of a change.
00:23We're seeing a few buyers having to get their refinance done in place.
00:26There's only a limited pool of buyers, I guess, who can really look to make a purchase at
00:31that kind of level.
00:31Despite prices falling in Sydney, they rose nationally by 0.7% last month and 9.9% over
00:39the year.
00:40The median home value is now more than $933,000.
00:45Perth led the monthly gains, followed by Brisbane, Darwin, Adelaide, the regions, Hobart and
00:52Canberra.
00:53Sydney and Melbourne went backwards.
00:55Definitely out, seeing your best.
00:58But the housing market is cooling.
01:00Auction clearance rates are falling.
01:02Some of those less auction prevalent markets like Perth and Adelaide are also seeing a
01:06pullback in auction clearance rates.
01:08Already this year, the Reserve Bank has increased interest rates twice, taking the cash rate to
01:144.1%.
01:16Now, economists are forecasting there could be as many as three more hikes in the months ahead.
01:21Interest rate tightening has constrained maximum borrowing capacities and that means that potential
01:29buyers can't afford to bid up home prices as much.
01:32Prices that are already sky high.
01:35You'll need to be a little more than $533,000.
01:36You'll need to be a little more than $533,000 in your business.
01:37You'll need to be a little more than $000,000 here.
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