Market Update for June 22 VICTORIA – Property and Finance
June 16, 2022
VIC Market News and Updates
June 2022 Update: Find out what’s happening in the VIC real estate market.
The latest PropTrack Home Price Index report in May 2021 confirms that Melbourne’s home prices fell in a month and remained milder in 2022.
Price increases have slowed significantly since mid-2021. Home prices in Melbourne are up only 7.49% from last year, the slowest in the domestic capital markets. The median home price in Melbourne is currently just over $ 900,000, while the median for the city as a whole is $ 785,000. Real estate prices in the Victoria region of have also cooled, dropping 0.32% in May to a median of $ 546,000. However, the region of Victoria has recorded a solid 18.06% rise in home prices over the past year.
The rate hike is 0.5%, and one in three borrowers never fall asleep with the rate hike, and the second-speed real estate market is emerging. June is already becoming a big month in the mortgage and real estate markets. Here’s what you need to know: Reserve Bank raises interest rates by 0.5% in June The Reserve Bank of Australia (RBA) raised interest rates by 0.5% to 0.85% 1 in June.
This is the largest monthly rate hike in 22 years2, and the RBA has decided on the grounds of rapidly rising inflation and “still very low interest rates” 3. The June rate hike puts pressure on mortgage floating rates, but the RBA also said Australia’s economy is resilient, growing 0.8% in the March quarter and 3.3% annually.
The labor market is also strong, with an unemployment rate of 3.9%, the lowest unemployment rate in almost 50 years according to the RBA. Inflation was higher than RBA expected, so more rate hikes are expected in 2022.
However, year-end interest rates are a major source of uncertainty in the housing market. The borrower is not ready to raise interest rates. A survey of 1,000 Australians conducted by Mortgage Choice found that the majority of Australian mortgage holders are not prepared for an environment of rising interest rates.
According to a survey, one in three (31%) mortgage borrowers are losing sleep in the face of rate hikes. People who recently bought their first home, and residents of Sydney, are most concerned about rate hikes, followed by those in Melbourne, Adelaide and Perth. The 18-35 year old group was the most affected (89%). But when the respondents were asked about the interest rates they would pay on their mortgages, the majority (55%) didn’t know.
“In this environment, it’s important to be notified that the borrower isn’t overpaying. If you’re worried about a June rate hike, contact your broker who can check your current mortgage and see if it’s your best option. If not, your agent can recommend you a better deal to save money.
If I can be of any further assistance with your real estate needs, please feel free to reach out as I’m happy to assist.
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Cheers & Kind Regards
Nathan Hunt 0409 853 503