{"id":42716,"date":"2023-04-01T16:44:45","date_gmt":"2023-04-01T03:44:45","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=42716"},"modified":"2023-04-01T16:44:45","modified_gmt":"2023-04-01T03:44:45","slug":"worrying-sign-for-homebuyers","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/worrying-sign-for-homebuyers\/","title":{"rendered":"Worrying sign for homebuyers"},"content":{"rendered":"

PHOTO: Homebuyers are being warned the cost of a house is set to stop falling despite interest rates sitting at their highest level in a decade. FILE<\/strong><\/p>\n

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The cost of purchasing a home looks to be back on the rise, at least for the time being, in an unwelcome change for those looking to buy a property.<\/p>\n<\/div>\n

The average cost of buying a home in Australia increased by 0.13 per cent in March with the median value currently $732,000.<\/p>\n

House prices have been falling since the Reserve Bank began its campaign to bring inflation into line in May 2022, causing interest rates to rise for 10 consecutive months.<\/p>\n

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\"National<\/div>\n

National home prices have reversed their downward trend, with price falls easing. Picture: NCA Newswire \/ Gaye Gerard<\/strong><\/em><\/div>\n

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\"The<\/div>\n

The capital cities saw price hikes throughout 2021 and parts of 2022 before they took a turn. Source: PropTrack<\/strong><\/em><\/div>\n

In response, Sydney\u2019s house prices fell by 6.03 per cent in the past year to sit at an average $994,000, Melbourne\u2019s saw a 5.79 per cent drop with the median home value now $789,000, according to the latest PropTrack Home Price Index.<\/p>\n

However, March has seen a slight bounce in prices, with Sydney house prices rising by 0.27 per cent, Melbourne<\/a> by 0.12 per cent, Perth by 0.24 per cent and Adelaide by 0.10 per cent.<\/p>\n

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Australian Inflation figures \u2018encouraging\u2019 as RBA set to halt rate rises | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

Brisbane<\/a>, Hobart and Darwin bucked the trend with prices falling by 0.06 per cent, 0.43 per cent and 0.10 per cent respectively.<\/p>\n

As rate rises drive prices down by reducing the amount of money borrowers are able to get, demand is being driven upward by increasing immigration, higher rent prices and an uptick in wages growth.<\/p>\n

A lower number of new listings has also buoyed values according to PropTrack.<\/p>\n

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\"So<\/div>\n

So far this year, Sydney has seen the greatest lift in values out of all capital city markets, with fewer homes on the market underpinning home prices.<\/strong><\/em><\/div>\n

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\"In<\/div>\n

In March, Melbourne home prices rose 0.12%, with the weaker flow of new listings increasing competition among potential buyers. As a result, sellers have benefited from less competition with other vendors.<\/strong><\/em><\/div>\n

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\"After<\/div>\n

After lifting in January and February, Brisbane home prices recorded a small fall in March (-0.06%), despite the flow of new listings remaining soft. Source: PropTrack<\/strong><\/em><\/div>\n

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\"Perth<\/div>\n

Perth home prices recorded a 0.24% increase in March to reach a new price peak.<\/strong><\/em><\/div>\n

With inflation rates still much higher than the RBA\u2019s 2-3 per cent target and unemployment at relatively low levels, the bank may opt for another cash rate hike, but a pause is on the cards, according to PropTrack economist Eleanor Creagh.<\/p>\n

\u201cConcerns around inflation expectations remaining anchored and the Board\u2019s commitment to overcoming the challenge of high inflation make a 25-basis point lift next week more likely than not. But it\u2019s a close call and the end of interest rate rises is in sight, whether the Reserve Bank pause this month or next,\u201d she said.<\/p>\n

\"Zed<\/a><\/div>\n
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MELBOURNE\u2019S flashiest real estate agent has set up shop on the Gold Coast | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cIf the RBA does lift the cash rate next week by 25bp, it will be the 11th consecutive hike, bringing the cash rate to 3.85%, its highest level since April 2012.<\/p>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n

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