Andrew Thompson National Director Loan Market
CASH RATE CLIMBS AGAIN BUT THERE IS GOOD NEWS FOR BUYERS
In its first meeting of 2023 , the RBA raised the cash rate for the ninth consecutive time . It increased from 3.1 per cent to 3.35 per cent as the bank continues to attempt to ease rising inflation . While this can impact borrowing power of prospective home buyers , the positive news for anyone looking to purchase is that home prices have continued to decline throughout the country . According to data from Neoval , capital city house prices are now down 6.1 per cent from their peak in March 2022 . A decline was seen in all capital cities . From their respective peaks in 2022 , the decline in prices were :
Demand has also dropped . Sales in the capital cities are estimated to be 29.4 per cent lower than the same period in 2022 and 11.5 per cent below the five-year average . This means less competition and the potential to negotiate on price .
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