Australia News

Auctions are in a declining trend, driving house prices lower.

House prices are in a downward cycle, and sellers who need a sale are becoming more flexible on price. However, motivated sellers represent a more significant proportion of the market as prices fall. Many homeowners who are not in a hurry to sell are postponing their campaigns until next year. At the same time, this spring’s sellers are mainly cognisant that they should not anticipate prices comparable to those during the housing bubble. Rising interest rates have reduced the amount of money that purchasers can borrow and spend at auctions, and some sellers had sold for somewhat less than their

March 12, 2024 No Comments

Australia News

Affordability changes as Australia’s median house price fall at a historic pace.

The most significant drops in house prices ever recorded occurred in Sydney, Melbourne, Brisbane, and Canberra during the past quarter, leaving prices in all the capitals $53,000 lower than in March this year. According to the most recent Domain Home Price Report, the declines have been so severe that house values have fallen below where they were last year in three cities: Darwin at 4.4%, Sydney at 2.8%, and Melbourne at 2%. Dr. Nicola Powell, director of research and economics at the Domain, blamed the sharp spike in interest rates, which have risen at the quickest rate since 1994, as

March 10, 2024 No Comments

Australia News

Signs That Australia’s Rental Industry Is Going To Explode

In most areas, property rentals increased by double digits over the last year, as shown by the September rental report from PropTrack. The proportion of rental properties advertised on realestate.com.au for less than $400 decreased from 41.8 percent at the outbreak’s onset to 19.3 percent in September 2022. Similar to PropTrack’s rental series, other data sources have shown a double-digit yearly rise in Australia’s asking rentals. During the pandemic, the need for additional space, the rising tendency to work from home, and the requirement for home offices constricted the rental market in Australia. This has led to a dramatic decline

March 9, 2024 No Comments

Australia News

Australian borrowers are in an ideal situation to withstand rising interest rates

According to Shayne Elliott, chief executive officer of ANZ, a large Australian bank, many Australian borrowers are ahead on their mortgage repayments, which should protect them from a rough landing when interest rates climb. This year, the Reserve Bank of Australia has raised the official cash rate six times in a row, bringing it to 2.6%. As a result, mortgage rates have increased from approximately 2% to between 5% and 6%. As the central bank combats inflation, the property market in Australia will likely face the weight of rising interest rates. Thursday on CNBC’s “Squawk Box Asia,” Elliot stated that

March 9, 2024 No Comments

Australia News

Sydney House Prices are “Extremely Inflated,” According to a UBS Report

Despite recent declines, a global investment survey by global bank UBS determined that Sydney’s real estate prices remain “very expensive.” The current annual UBS Global Real Estate Bubble Index did not classify the port city’s real estate market as a bubble. Still, it was nevertheless priced substantially over its fair value. The analysis cautioned that the global housing bubble would soon pop. The analysis found that property price rises in the 25 cities analyzed reached their most significant level since 2007 and household debt increased much faster than the long-term average. It was stated that housing prices had diverged from

March 8, 2024 No Comments

Australia News

Australia housing crisis: “We worry a wave of homelessness will strike.”

Already one of the least affordable rental markets in the world has seen rent increases, eight interest rate rises, rising expenses of living, and natural calamities compound the problem. Belinda has been turned down for rentals more than a hundred times in the last year. A temporary shelter in Campbell town, southwest of Sydney, is now home to the 39-year-old Australian single mother of four. She has six months to find a place to live that costs less than 500 Australian dollars (€310) a week, or she will be forced to sleep on the streets. After that, I have no

March 7, 2024 No Comments

Australia News

Where should you put your money in 2023?

For investors, 2022 was a turbulent year. Investors saw a decline in the value of their shares, homeowners saw their home values fall by the most significant margin in decades, and savers were disadvantaged since interest rates increased but failed to keep up with inflation. In that case, where can we expect to find promising investment prospects in the next year? To find out, we consulted the professionals. In an interview with CNBC, Mark Lister, investment director at Craigs Investment Partners, predicted that the real economy will be hit worse than the financial markets. Although the financial markets struggled in

March 7, 2024 No Comments

Australia News

Queensland Housing Minister Implores Sympathy Following an ‘Appalling’ Proposal to Increase Rents By 20%.

Queensland’s housing minister deems it “appalling” that landlords have been persuaded to boost rates amid a rental crisis after a Brisbane real estate agent advocated for rises of over 20%. Leeanne Enoch’s remarks came after Guardian Australia reported that Ray White West End emailed landlords pushing them to increase rents by more than double the inflation rate. “It is awful to see several real estate agents implementing significant rent hikes amid enormous demands on the whole housing sector,” said Enoch. “I would strongly urge real estate agents and homeowners to have compassion when we gather at the Queensland housing summit

March 7, 2024 No Comments

Australia News

NAB predicts that by 2023, home prices will fall by much to 22.3%

The National Australia Bank predicts that between 2022 and 2023, house values will decline by 23% in several states. The majority of Australia’s metropolitan cities, except Sydney, will witness a severe decline in housing values in 2023 due to the pandemic. NAB discovered that Hobart will have the most significant decline in home prices next year, with prices expected to decrease by 16.6% after falling by 6.4% this year. This could result in a 23 percent decline in Hobart home prices over the next two years, shaving as much as $174,000 off the price of a $758,000 median-priced home. The

March 7, 2024 No Comments

Australia News

How the Australian real estate market has progressed over the past year.

The housing market is among the most susceptible to changes in interest rates. Eight consecutive rate hikes in 2022 to combat rising inflation sent shockwaves across the market and are still at the heart of the decline in Australian property prices. When comparing national home prices from November 2017 to November 2018, we see a yearly decline of 3.2 percent. However, Eliza Owen, chief of research at CoreLogic, says the decline’s speed has slowed “broadly since September.” Although some might consider this good news, she warned that next year could see a resumption of the slide. CoreLogic data reveals that

March 6, 2024 No Comments