The July 2022 Broker Insights webinar helped brokers make sense of the RBA cash rate rises, with in-depth analysis from CoreLogic on how Australia’s housing market is shaping up in 2022.
At the time of recording, the RBA (Reserve Bank of Australia) had increased the official cash rate to 1.35 per cent, lifting 0.50 points from the previous rise on 8 June. It is expected that the cash rate will rise further throughout the year.
To help us make sense of the three cash rate rises we’ve seen in as many months, we invited Tim Lawless from CoreLogic to be our guest speaker for the session.
Tim’s analysis of the housing market was essential viewing, so here are five key takeaways from his presentation:
1. The cash rate rises did not start the slowdown of the market
Growth in housing values was slowing well before the cash rate started to rise, with factors such as housing affordability challenges, rising fixed-term mortgage rates, lower consumer sentiment, and tighter credit conditions over the past year all contributing to the changing momentum.
2. Our capital cities have experienced a slump in growth
Most of the capital cities across our nation are seeing a drop in growth rates. Conditions started to diversify with a sharper decline in rates being seen across Melbourne and Sydney. Darwin and Perth have experienced a recent second wind as state borders have opened.
3. The housing market decline has been sharper since interest rates rose
The steep decline in growth across the country has been a reaction to the interest rates being pushed higher over the past few months.
4. There are fewer new home listings in 2022 than there were in 2021
The flow of new listings coming into the market is now easing from recent highs. In the four weeks ending 10 July, there were 37,280 new home listings nationally, which is 3.4 per cent lower than it was at the same time last year but still 6.2 per cent above the 5-year average.
5. Owner-occupier numbers have declined more rapidly than investors this year
The growth in new housing finance commitments has slowed as housing conditions have cooled in the past year. However, investor lending has been more resilient.
Did you miss the webinar?
Remember that you can catch up on an impressive array of guest speakers, including Tim and his insightful presentation, by watching the full recording here.