Mortgage holders have been told to expect another hip pocket hit this year, with experts predicting the Reserve Bank’s 12th cash rate hike is unlikely to be its last, while impacts to property prices remain doubtful as a shortage of listings and high demand drive growth.

 

Angus Raine, Raine & Horne executive chairman, said the potential impact of the Reserve Bank’s decision was concerning for homeowners struggling to manage rising mortgage and energy expenses.

He said the RBA has indicated there could be a need for further actions to tighten monetary policy in order to achieve its inflation target of 2-3% within a reasonable timeframe. “It is desirable for the RBA to permit the recent rate hikes to filter through the economy, particularly as more homeowners’ transition from fixed rates in the upcoming months,” he said. “Halting the increase in interest rates next month, coinciding with the start of the 2023/24 financial year, would provide relief to small businesses that are struggling with mounting financial burdens, including rising expenses for fuel and equipment.”

With the unemployment rate expected to continue to lift in the coming months, PropTrack senior economist Eleanor Creagh said it could once again mean buyers become more cautious as their sense of job security waned. “The current pace of price growth would also wane if stronger market conditions improve seller confidence and spark a boost in stock coming to market in spring,” she said. 

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Some suburbs on the outskirts of our capitals are offering property prices up to 200% cheaper than their more exclusive neighbours, making them a relative bargain for buyers. But while these so-called "sister suburbs" may share a similar location to the aspirational suburb nearby, their housing offering may vary vastly, said PropTrack's director of economic research, Cameron Kusher.

Sometimes you're comparing an acreage suburb with large homes on large blocks to a residential suburb where the housing offering is really different. Sometimes you're comparing suburbs that are adjacent to the beach or the water to those that aren't." "Sometimes the substitute suburb for you isn't the one next door." But in an inflationary environment, sister suburbs can offer a cheaper alternative for buyers with more limited budgets, Mr Kusher added. "If people can't afford to be in these main suburbs and they really want to be in that location, maybe they will look at the price difference in the next-door suburb and think, 'sure it's not the same, but everything I want from that main suburb is five minutes away. "For buyers, it really depends if it's the location or the type of property that's the most important thing." Here are the sister suburbs 10 to 20 kilometres from our CBDs with the biggest difference in median sales prices to their surrounding suburb for houses over the 12 months to March 2023, according to PropTrack data. 

 

 

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