Steph Chalmers

really drastically changed over the last few months.

So it does make sense that sentiment in the property market has shifted pretty quickly and the borrowing capacities of people as well has shifted.

So there's some stats out from Canstar, which is a financial comparison site, and they've crunched the numbers.

So they've used someone earning the average full-time wage of around $106

thousand dollars so for an individual they've said if there's a hike tomorrow so that's the May meeting that'll take the cumulative impact on their borrowing capacity to being able to borrow thirty six and a half thousand dollars less than they were before these three rate hikes so that's not insignificant and for a couple of

on the average wage, it's around $73,000.

So it's starting to add up and have an impact, you'd have to say.

And I think that's going to be felt in the outcomes we've seen, particularly in those big capitals that are so expensive already that people might be close to the edge of their borrowing capacity.

So these rate hikes can really make the difference for people who are looking to max out their borrowing capacity.

And it could also be, I'm just looking at the cotality auction clearance numbers, they also referred to the number of properties going under the hammer being up from last year.

So it could also be the other side of it, people who perhaps own more than one property, if they have an investment property and they see rates rising, they hear things like, oh, there's going to be changes in the budget to capital gains tax discount and negative gearing potentially.

and perhaps their other living costs are rising, they may consider selling that property.

So it will be interesting to see, you know, the extent of this, how far it snowballs and do we get, you know, by the end of the year, a significant drop, obviously, taking into account that prices have been rising substantially last year, as you said, but

Yeah, I do think anecdotally talking to people, I've heard people in suburbs that would have typically been advised to go to auction being told, I wouldn't go to auction right now.

And they've had their property on the market for a few weeks and seeing sale signs popping up near me.

So it will be interesting over the next few months when we start to get the data, is it backing up those kind of anecdotal observations that perhaps some people who were at the edge financially are

looking to sell their properties because costs are rising and they just can't afford to support those other properties.

Yeah, exactly.

So looking at the LSEG data, it's sitting around 81% chance of an interest rate hike tomorrow.

And that's based on interest rate derivatives pricing.