The declines in property prices have slowed down for now, with the latest data from CoreLogic showing the smallest monthly fall since May 2022.
Rental markets across the country are as tight as they’ve ever been which is driving up rental prices. However, property investors are also being faced with the sharpest increase in interest rates in decades which is making things equally tough for many owners and hurting their bottom line.
Home prices across the country have ended the year down 5.3%, the largest decline since 2008.
Home prices fell for the seventh straight month in November, with values down 1% across the country, however, the good news for homeowners is that the rate of decline is slowing down in some areas.
The broad-based fall in property prices continued in October with all capital cities seeing values decline.
Following weeks of criticism from all sides of the property industry, the Queensland Government has decided to scrap its proposed changes to land tax.
Property price declines are starting to ease off across the country, led by Sydney, Melbourne and Brisbane which all saw a decreased rate of decline last month.
UPDATE: Queensland Scraps New Land Tax Changes
In recent weeks, the mood across the country has started to wane as national property prices have finally started to fall away.
Property prices across the country have continue to slow down, with the latest data from CoreLogic showing national values declined 1.3% in the last month.
This month, the RBA has come out and raised the official cash rate for the first time in more than a decade.
Property prices across the country saw another increase in value last month, however, the rate of increase continues to slow down.
Full minutes of the meeting follow.
International economic development Members commenced their discussion of international economic developments by noting that the global outlook had improved, and risks had become more balanced, because of progress in vaccinations and the provision of additional fiscal support. Growth in the global economy was expected to rebound solidly in both the current and the following year. Even so, the global recovery remained uneven. Output remained well below pre-pandemic levels in a number of countries because of recurring outbreaks of COVID-19, and in some emerging market economies, where financial conditions had tightened, there was limited scope for ongoing large-scale fiscal support. The level of output was expected to remain below its pre-pandemic trajectory in many economies over the forecast period, with the United States and China notable exceptions.
Policy actions during COVID The Reserve Bank of Australia (RBA) has taken a number of complementary policy actions to support the Australian economy since the onset of COVID. The RBA has lowered its policy interest rate to near zero, set a target for the 3-year government bond yield, enhanced its forward guidance, commenced a program of purchasing government bonds and provided long-term low-cost funding to the banking system. I will explain each of these actions in more detail shortly.