The uncertainty over potential rate cuts will weigh on buyer demand and slow price growth in Sydney and Melbourne, experts say.
Already a subscriber?The Reserve Bank of Australia’s decision to keep interest rates on hold is unlikely to boost housing demand as home buyers continue to grapple with poor affordability and lower borrowing capacity, experts say.
“While stable rates and lower inflation should help to lift consumer sentiment, which has historically shown a close relationship with property sales, the ‘hold’ decision may not be enough to see that rise in consumer sentiment flow through to housing market activity. The uncertainty and trepidation about the future direction of interest rates, a slowing economy, and decline in net migration levels will significantly slow the Sydney and“We’re likely to see ongoing softening in buyer interest and uncertainty on the seller side as well,” he said.In the past month, Sydney home sellers slashed their asking prices by 1 per cent, those in Melbourne by 0.9 per cent, and by 0.5 per cent across the combined capitals, SQM Research data shows.
“Melbourne’s home values are already falling, and while Sydney’s house prices are still rising, I think it’s likely we’re going to start recording a fall in actual prices for Sydney very shortly.”slumped by 7.1 percentage points to 69.4 per cent at the weekend, the second-lowest clearance rate this year, and the only other time it fell below 70 per cent, CoreLogic said.
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