Market Essentials - September 2022
/This Month in Review
This months interest rate rise of 0.5 per cent marked the RBA’s fifth consecutive rate rise, taking the cash rate to 2.35 per cent for September.
This takes the cash rate to its highest level since December 2014 and prompts questions of how long rate rises will continue. To date, this is the fastest interest rates have risen in 28 years as the RBA tries to curb inflation.
To date, all four big banks have passed all interest rate rises onto their customers in full. ANZ predicts the cash rate will reach 3 per cent by Christmas as housing prices across Australia drop by up to 20 per cent before a modest fall in interest rates in 2024.
This is bad news for mortgage holders, further affecting the real estate market across the country.
There was not much good news for renters either with supply unable to meet demand across the country.
With rental rates soaring, the Greens called for ongoing rent caps to address Australia’s rising rents was not well received by the market.
Overall, it has been a tough start to the new financial year with cost of living and interest rates biting hard with no relief in sight.
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The Market Essentials Report is compiled by Buyside on behalf of Loanscape. Founded by Josh Masters, Buyside are registered buyer's agents with on the ground expertise in the Sydney and Brisbane property markets.