The RBA increased interest rates again this week as inflation rose to 6.1 per cent; the fastest pace in more than two decades. Meanwhile, Treasurer, Jim Chalmers, has warned us to ‘brace for pain to escape recession’ later this year.
Despite the gloomy economic forecast, there were mixed messages in the property market last month, with auction clearance rates falling below 60 per cent for the seventh straight week but prestige properties going gangbusters.
However, for the most part, homebuyers are sitting on their hands, reluctant to buy as the triple whammy of rate hikes, rising inflation and waning consumer confidence persist.
For sellers and investors alike, higher stock volumes and a decrease in housing values have seen auction withdrawal rates increase across the country.
Winter is traditionally a slower season across all property markets, but Sydney and Melbourne’s in particular have reacted strongly to the current economic conditions. Proptrack expects property prices in all centres to fall over the next eighteen months, with the eastern capitals set to drop the furthest.
Commercial property sales have also started to stall across the country in the last month with the exception of big-ticket pubs which rose 25 per cent across the country in the last month.
Download and read the full Market Essentials – August 2022 Report.