House prices tumble; $A at decade high; pollies told to stay quiet in Chinese EVs
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What is the main topic discussed in this episode?
Welcome to Fear and Greed, business news you can use. Today, house prices across the country flatline, while in Sydney and Melbourne they fell sharply last month. The Aussie dollar pushes back above 72 US cents and is riding high against many global currencies. And local politicians told not to have confidential discussions in Chinese-made EVs. Plus, the use of debit cards is declining. and a CIA official accused of stealing $303 million worth of gold bars from the organisation. It is Monday, the 1st of June, 2026. I'm Michael Thompson, and good morning, Sean Aylmer.
What are the current trends in Australian house prices?
Happy winter, Michael. Happy winter. Oh, I tell you what, that CIA story. That headline alone, it has everything, right? That's a good story. If you're feeling down about the start of winter, stick around.
How is the Aussie dollar performing against global currencies?
That's a cracker of a story. The main story this morning, Sean, house prices across the country have flatlined and are falling sharply in Sydney and in Melbourne as the cost of living crisis, three interest rate hikes, inflation pressures – Proposed changes to negative gearing and capital gain stacks, as well as adding to the mix of slowdown and economic growth, all hit the $12.3 trillion market. House prices in Sydney and Melbourne fell nearly 1% during May, while Cotality's national home value index across the country was flat.
Yes, though house price growth, where there is growth, is weakening in most markets. Although Perth and Darwin are still doing pretty well.
What concerns have been raised about Chinese-made electric vehicles?
They recorded growth of 1.5% last month, highlighting the multi-speed conditions across the capitals. ACT values also fell last month. Brisbane and Hobart rose at 0.9%. Adelaide... 0.5%. As prices are falling, so too is the auction clearance rate with the preliminary figure for the past week coming in at 54.5%.
Why is the use of debit cards declining in Australia?
That is the lowest rate since April 2020 during COVID. When we get the final figure, it will almost certainly be under 50%. Brisbane's preliminary clearance rate came in at just 43%.
What are the implications of the CIA gold bar theft story?
Canberra, 39%, the lowest since June 2019. Sydney was at 52%. That final number will definitely come in under 50%, more like the mid-40s or so. Melbourne came in about 58%.
I know, Sean, that I rattled off pretty much a shopping list of contributing factors here. But the thing is, the loss of momentum in the housing market in most cities has actually been happening since last spring, which is before interest rates actually started to rise. Then after that came the Middle East conflict, and then most recently the changes in taxation as it relates to investment properties. Is it still, I suppose, the higher end of the market where the momentum is being lost most?
Probably. Now, Tim Lawless, the great Tim Lawless, Cotality's research director, friend of the show. He would love to be described as the great Tim Lawless, isn't it? That's fantastic. He's a good man, Tim. He is a good man. He was talking over the weekend saying that the pace of growth is easing across all markets. Though the lower price tiers are showing most resilience, they're still not great. In Sydney and Canberra and Melbourne, prices in the bottom 25% are actually going backwards now. They've joined those top three quartiles. In those two cities, Sydney and Melbourne, supply and demand are more in balance, meaning finally... It is a better market for buyers. So we talk about house prices falling being a bad thing.
There are plenty of first-home buyers, plenty of buyers out there quite happy that we don't quite have that price growth that we've had of recent years. Of note, Michael, regional markets have shown greater resilience. Housing values rising 0.6% across the combined regions in May, although conditions are slowing there as well. The monthly rise was the smallest in a year, similar to the capital's growth is definitely continuing to come off.
How are interest rates affecting the housing market?
Okay. Now, away from property, let's head to equities now. The local share market, Sean, surged on Friday, recording its best day, rather, in nearly two months amid hopes of easing tensions in the Middle East. However, futures trading does suggest that it will open slightly lower this morning.
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Chapters
7 chapters
1
What is the main topic discussed in this episode?
0:06–0:41
2
What are the current trends in Australian house prices?
0:41–0:52
3
How is the Aussie dollar performing against global currencies?
0:52–1:32
4
What concerns have been raised about Chinese-made electric vehicles?
1:32–1:53
5
Why is the use of debit cards declining in Australia?
1:53–2:08
6
What are the implications of the CIA gold bar theft story?
2:08–4:01
7
How are interest rates affecting the housing market?
4:01–17:58
Speakers
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