House prices drop as cash rates continue to rise
Australian house prices had their largest monthly fall in almost 40 years last month, with new data from CoreLogic showing prices dropped by 1.6%, marking the fourth consecutive month of decline in the national market. The largest decline was in Sydney (2.3%) and Brisbane (1.8%). Until interest rates stop rising, house prices are likely to continue falling.
A sixth-rate rise is expected for October, however addressing a parliamentary standing committee on economics, RBA Governor Philip Lowe hinted that the upcoming interest rate hike could be halved from the usual 50 basis points. The Governor stated that while further hikes to the cash rate are “required”, it will be necessary to slow the speed and size of those hikes.