The Real Estate Institute of Australia (REIA) President, Mr Hayden Groves has urged the RBA to exercise caution going into 2023 as the cash rate rose another 0.25 basis points today to 3.10%.
Mr Groves said that the RBA is providing mixed signals to Australian homeowners and aspiring homeowners.
“The RBA is expecting to further increase interest rates but is also saying that the lag effect has not yet kicked in. So they are aggressively pursuing rate rises knowing the impact from previous rate rises is yet to happen.
“The RBA should have waited to see the impact of the past increases before the next Board meeting - it takes time for the past increases to impact on demand and prices.
“The rise in interest rates on a $750,000 mortgage has added more than $1,400 in monthly mortgage repayments further adding to the decline in housing affordability.”
Our Team
GROWTH IN HOUSING FINANCE APPROVALS RESUMES
2021 OFFERS UNIQUE OPPORTUNITY FOR LATE AUTUMN AND WINTER SALES
RENTS CONTINUE RECOVERY FROM COVID IMPACT
All-star line-up for REIA National Awards for Excellence 2021 to be held in the Top End
HOMES SHOULD BE AT THE HEART OF BUDGET 2021 AS AUSSIE JOBS COME BACK ONLINE
RAPID GROWTH IN HOUSING FINANCE APPROVALS SLOWING DOWN
AUSTRALIAN HOUSING PRICES SOAR BY 500% OVER PAST 25 YEARS