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August 2022 Australian Housing Market Trends

Learn more about the exclusive insights and predictions of property experts from the market’s performance throughout August.


Home loan rates


Earlier this month, the Reserve Bank of Australia (RBA) announced another monthly increase to the official cash rate. The RBA lifted the cash rate by 50 basis points, bringing the cash rate to 1.85%. In their media announcement, they deemed this decision necessary for bringing down the rate of inflation to its normal 2-3 per cent range.


Inflation is currently sitting at 6.1 per cent and is expected to rise to 7.75 before the end of the year.

As a result, home loan rates have increased to levels experienced well before the pandemic. The big four banks have also mentioned that home loan rates will continue to rise this year, along with the increasing cash rate.


While home loan rates continue to rise throughout the country, a recent ANZ survey has found that it hasn’t significantly impacted consumer confidence. In fact, the ANZ Roy Moran survey identified that consumer confidence increased by 4.9% in the week leading up to August 27th. In terms of the existing financial conditions, confidence also increased by 5.4%.


David Plank, ANZ’s head of Australian economics stated that the report showed overall confidence from consumers residing in Western Australia, New South Wales, and Victoria.


Australian housing market – rental market trends


The Australian housing market is continuing to prove challenging for renters. The Home Affairs Department has identified that pressure will tighten even further in coming months as international students applying for Visas rose in June.


A PropTrack graph by realestate.com.au has shown that overseas searches to rent increased in the most recent six months, in comparison to the six months prior. Search volumes rose by 59% since the borders reopened.


The graph below shows the number of competitions for rentals in terms of units and houses in the year from last to now.

With competition heating up for rentals in the Australian housing market, so are median rental prices. The average price tenants are expected to pay for rental properties in these inner-city locations are:


· Sydney - $587 per week

· Melbourne - $433

· Perth $464

· Brisbane $470


The cost of rentals in the outskirts of these cities are averaging between $15 to $20 cheaper than their inner cities. This is except for Melbourne where it costs $6 more to rent in the greater city.


Australian property market predictions for Spring


As we move into Australia’s most renowned selling season, experts are hedging their bets on where people are looking to buy within the Australian property market. This data is based on where search results and potential buyer activity has already started to ramp up.


The Gold Coast (QLD), Sunshine Coast (QLD), and Perth (WA) are ranking as popular suburbs to buy within the Australian property market. The suburbs listed, in the graph below, demonstrate the most in demand suburbs and their median sale price.

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With house prices slightly declining in recent months, because of home loan rates rising, property experts believe current conditions will give those in the market for a home more choice. According to Eleanor Creagh, the senior economist of PropTrack, the number of listings increased by 0.6% in demand and is confident that throughout September and much of Spring there’ll be greater variety.


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