Chapter 1: What are the current trends impacting the Australian property market?
We connect you to the best real estate information across Australia, The Real Estate Podcast. And welcome to another episode of The Real Estate Podcast, available on iHeartRadio, also on Google and Apple Podcasts, or wherever you get your podcast from. Well, it's a Saturday morning. Let's have a look at some real estate news and realestate.com.au. They're reporting that the supply disruptions
And the Russian invasion of Ukraine are pushing up prices and inflation. And the Reserve Bank of Australia Governor Philip Lowe is advising borrowers to prepare for a possible interest rate rise this year as data shows home buyer demand continues to ease. He said it would be prudent to plan for an increase and that it's plausible that interest rates will increase this year.
However, he went on to say it's not guaranteed, which is a little bit like having a bet both ways, isn't it? Many leading economists have brought forward their predictions for the timing of the RBA's first rate hike, with the Commonwealth Bank of Australia and AMP Capital now expecting a move in June.
Asked about the chance of a June rate increase, Mr Lowe said that he did not want to specify a month. He says presumably there's a certain configuration of events that could lead to an earlier increase, but it's also plausible that this gets pushed out again further.
And went on to say that there are plausible scenarios still where rate rises don't occur for a long period of time, well into next year or even further. And it's important to keep this in mind, the last time the RBA raised the cash rate was in November 2010, with Mr Lowe noting that many borrowers had no experience with higher rates.
He said for many borrowers that's going to come as quite an unwelcome development, but that depositors would welcome higher rates on their savings. And CoreLogic is reporting slower buyer demand, tighter lending conditions and affordability constraints contributed to an easing in Australia's national high volume growth rate in February.
The lowest rate of growth since October 2020 coincided with a new record high for residential markets combined value, which hit $9.8 trillion at the end of February. And that's up $9.7 trillion in the previous month.
Australia's household wealth is underpinned by residential real estate now worth almost $3 trillion more than superannuation, the Australian listed stocks and commercial real estate combined. So here are 10 key market metrics that are making headlines in March. Number one is dwelling values in Australia are 20.6% higher over the past 12 months.
Number two is the highest annual growth rate in dwelling values among the regional and capital city dwelling markets. was across Brisbane at 29.7% and the lowest rate of appreciation in values was across regional Northern Territory at 7.1%. Number three, sales volumes rose 37.7% in the first 12 months to February.
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Chapter 2: How is the Reserve Bank of Australia's stance affecting borrowers?
And number 10, lending for property purchases reached a new record high through January 2022. This included a record $11 billion to investor purchases. Despite these record highs, growth in lending slowed to 2.6% through the month, down from 4.4% in the previous month. So those are 10 market metrics that are making headlines in March of 2022.
Have a great Saturday and a great weekend across Australia. We connect you to the best real estate information across Australia, The Real Estate Podcast. Thank you.