Rate Rise | Clearance Rates
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What recent changes have occurred in Australia's interest rates?
It's The Real Estate Podcast across every state, city and town of Australia. And welcome to another episode of The Real Estate Podcast available on iHeartRadio every morning, also on Spotify and Apple and wherever you get your podcasts from. Well, it's a Wednesday morning, the day after another rate hike from the RBA. It's the third day of August for 2022. And yes, the Reserve Bank has increased the interest rates for the fourth month in a row, raising its cash rate target by half a percentage point. The RBA has now lifted its benchmark interest rate by 1.75 percentage points since its first rate rise in May, with the cash rate now sitting at 1.85%. So what does it mean? Well, I guess you're starting to look at those numbers, probably did them overnight, but if you've got a $500,000 mortgage...
After yesterday's rise, you'll be paying $140 extra, $750,000 loan. It's $211,000. But if you're on a million dollars, if you've got a million dollar mortgage, and I can tell you that there's more people with these loans than you think around Australia. If you combine the May, June, July and August rate rise, that is a shade under $950 that people are having to find, which is an awful lot of money. If you look at the $750,000 loan with those four hikes, That is $708 and the $500,000 loan with those combined hikes, $472. So it is going up and up. And coming next, I'll give you some of the press comments from Philip Lowe yesterday. we are just as addicted to property as you are. Every weekday morning from 6.30.
From first home buyers to property investors and everything in between. Every morning on the Real Estate Podcast. All right, let's have a look at some of those comments from the Reserve Bank Governor, Philip Lowe, who says the board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time. He also said that the path to achieve this balance is a narrow one and clouded in uncertainty, not least because of global developments. He went on to say yesterday that the outlook for global economic growth has been downgraded due to pressures on real incomes from higher inflation, the tightening of monetary policy in most countries, Russia's invasion – of course we've talked a lot about that –
of Ukraine and the COVID containment measures in China, which of course is causing a real headache with that supply chain. And lastly, Philip Lowe said the size and timing of future interest rate increases will be guided by the incoming data and the board's assessment of the outlook for inflation and the labour market. That all unfolded yesterday afternoon. Coming up next, we're going to take a break from talking about those rises. Eliza Owen is here from CoreLogic. She is the head of research in Australia, and we're going to be having a look at the clearance rates around the country to see who is performing best or worst.
How have clearance rates changed in the Australian property market?
Grab your coffee and switch on your real estate breakfast every weekday morning from 6.30. It's the main centre forecast with propertybuyer.com.au. Alright, let's check on your weather around Australia. In Sydney today, cloud is clearing to a mainly dry day and your high of 23 degrees. Melbourne, expect a few showers. The wind is going to ease but it's going to be warm. 19 is your forecast top. Brisbane, a sunny Wednesday is in store, 24 degrees. And in Perth, showers and possibly heavy and your high of 17 degrees. It's the Real Estate Podcast across Australia, seven days a week. Well, a few days ago, CoreLogic's quarterly auction market review was out, not painting a pretty picture with buyer sentiment down and clearance rates lower over the June quarter.
Now, the report shows that 31,439 auctions were held in the three months to June, following the busiest March quarter on record when nearly 24,000 homes went under the hammer. Interestingly, the auction volumes over the June 2022 quarter were the second highest on record for a June quarter, but the clearance rate was substantially lower. So let's welcome in this morning Eliza Owen, who is the Head of Research Australia at CoreLogic.
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Chapters
5 chapters
1
What recent changes have occurred in Australia's interest rates?
0:02–3:37
2
How have clearance rates changed in the Australian property market?
3:37–6:20
3
What insights does Eliza Owen provide about auction volumes?
6:20–9:39
4
How do Sydney and Melbourne's clearance rates compare?
9:39–12:42
5
What factors are influencing property values in Sydney and Melbourne?
12:42–13:56
Speakers
2 identifiedMore from Aussie Real Estate Podcast
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