By Nerida Conisbee · Chief Economist Home prices have fallen since the May Budget, but rents are still rising and new homes are getting harder to build. Here’s why falling prices could make the housing shortage worse. The housing market is now showing the first clear signs of the changes announced in the May Budget. Established home … […]
By Nerida Conisbee · Chief Economist The RBA has lifted the cash rate to 4.60 per cent despite rising unemployment. Here’s why the Bank took the risk, and whether this could be the peak for rates. The Reserve Bank has increased the cash rate by 0.25 percentage points to 4.60 per cent, responding to persistent inflation despite … […]
By Atom Go Tian For three years, the time it took to sell a home barely moved regardless of what happened around it. Since May, the national median has jumped from 34 days to 47, and the shift has not landed evenly. A property entering today’s post-Budget market is spending two weeks longer on the … […]
By Nerida Conisbee Premium suburbs led the downturn for most of the year, recording the largest price falls while affordable markets held up. Open home data tracking 13,000 inspections a week now shows that pattern starting to invert. The housing downturn is starting to shift. Premium markets, which have experienced some of the largest price … […]
By Nerida Conisbee | More about Nerida Conisbee The Budget made established property investment less attractive. Investor lending fell immediately. The question now is what combination of rent increases and price falls would make the numbers work again. A key aim of this year’s Federal Budget was to make investing in residential property less attractive … […]
by Nerida Conisbee | More about Nerida Conisbee The housing downturn is real and broadening, but the conditions required to produce a large national decline are considerably more demanding than the current conversation assumes. The maths is worth testing. Australia’s housing downturn is underway. Higher interest rates have reduced borrowing capacity, while the Federal Budget … […]
By Nerida Conisbee | More about Nerida Conisbee Higher interest rates are meant to bring inflation down. They also make new housing more expensive to build. The two largest policy forces acting on housing right now are pulling against each other. Headline inflation eased to 3.8 per cent in June, but housing inflation accelerated to … […]
By Nerida Conisbee | More about Nerida Conisbee Inflation eased in June. Fuel prices drove most of the improvement. Strip them out and the picture the Reserve Bank is watching – underlying inflation, housing costs, the labour market – has not moved. The Reserve Bank has left the cash rate unchanged, choosing to wait for … […]
By Nerida Conisbee The housing downturn is now broadening across cities and price points. How far prices can fall from here depends on a variable that most of the conversation has not caught up with: the cost of building a replacement home. Australia’s housing downturn is now underway. Higher interest rates have reduced borrowing capacity, … […]
By Nerida Conisbee | More about Nerida Conisbee Average open home attendance has nearly halved in a year. The decline was well underway before the Budget and has continued since. Whether it has now found a floor is the question the latest weekly data is starting to answer. Open homes have become noticeably quieter. Across … […]