Reserve Bank’s Decision
The Reserve Bank of Australia (RBA) has once again chosen to maintain the status quo, keeping the cash rate unchanged at 4.10% for the fourth consecutive month.
Read the full statement on the RBA’s website.
A New Leadership of RBA
The spotlight was firmly on the newly appointed governor, Michele Bullock, as she made her inaugural decision regarding the direction of interest rates. Having taken the reins from Philip Lowe on September 18, Ms. Bullock has made history by becoming the first female governor in the central bank’s 63-year tenure.
The decision to hold the rate was anticipated by many economic analysts, who predicted that Ms. Bullock would adopt a cautious approach, possibly leading to an extended pause before any potential rate cuts.
Mortgage Stress on the Rise
Roy Morgan’s recent mortgage stress survey paints a concerning picture. A staggering 29.2% of owner-occupied households with mortgages are currently under financial strain, marking the highest percentage since the financial crisis of May 2008.
Furthermore, fixed-rate mortgages worth an estimated $52 billion are slated to reach their term by the end of December. This could result in a significant number of borrowers transitioning from the current low rates of approximately 2% to variable rates nearing 6%.
Property Market Overview
- VIC:
- Auctions/Clearance Rate: 197 / 54%
- Private Sale: 858
- Monthly Home Value Change: ▲ 0.4%
- NSW:
- Auctions/Clearance Rate: 807 / 55%
- Private Sale: 1418
- Monthly Home Value Change: ▲ 1.0%
Also read: Bray Leino Splash Pledges Support to Higher Education with Exclusive Bursary for SIT Students
- ACT:
- Auctions/Clearance Rate: 65 / 60%
- Private Sale: 88
- Monthly Home Value Change: ▲ 0.2%
- QLD:
- Auctions/Clearance Rate: 219 / 45%
- Private Sale: 1018
- Monthly Home Value Change: ▲ 1.3%
- WA:
- Auctions/Clearance Rate: 11 / 55%
- Private Sale: 510
- Monthly Home Value Change: ▲ 1.3%
- NT:
- Auctions/Clearance Rate: 1 / —
- Private Sale: 26
- Monthly Home Value Change: ▲ 0.1%
- TAS:
- Auctions/Clearance Rate: 0 / —
- Private Sale: 119
- Monthly Home Value Change: ▼ 0.6%
- SA:
- Auctions/Clearance Rate: 75 / 74%
- Private Sale: 287
- Monthly Home Value Change: ▲ 1.7%
