Sally Tindall

You only have to go to an auction and see it get passed in in Sydney to know that clearance rates and prices are on the decline.

Adelaide has held its ground so far.

The latest CoreLogic figures show that it was up 0.4%.

in the most recent month.

Year to date, Adelaide property prices, they're up 11.6%.

But I do think we're sitting on the cusp and the tide is turning for Adelaide in particular, that we could start seeing drops in Adelaide in the months ahead.

Certainly, NAB's latest economic forecast shows that Adelaide is set to rise 9%.

from the beginning of 2022 to the end of 2022.

But as I mentioned, Adelaide's already up 11.6%.

So that actually suggests that it's going to fall 2.6% in the remainder of this year.

Oh, thanks for having me.

It's lovely to be here.

yeah absolutely and so there's two problems facing first home buyers one is often the deposit stumping up enough to put down even just 5 10 or 20 deposit but the second one is what we call serviceability the bank needs to see factor in how much income you earn before they're going to accept your loan and that's often a stumbling block for people that are buying by themselves but of course

a little bit of thinking differently can get you over that stumbling block.

The issue really we're looking at right now is that interest rates are at record lows.

That's made serviceability a lot easier for a lot of first home buyers, but it is about to change.

I think we're potentially just a couple of months away from the first cash rate hike in 11 years.

and that will dramatically change those serviceability calculations.

The banks will start lending people less, and that's a worry.

Well, it's all about thinking outside of the box.