Property market update: July 2022
Finder's home loans editor Richard Whitten has covered mortgages and the property market since 2017. Every month he analyses price and rate data to provide a snapshot of the Australian property market.
There's no relief for borrowers this month. The Reserve Bank lifted the cash rate a third time, again by 50 whole percentage points. This means most borrowers with variable rate home loans will see their mortgage rates rise by the same amount.
These successive increases have meant borrowers' home loans are now 125 percentage points higher than they were just 3 months ago. This means if your home loan rate was 1.80% at the start of the year, it would now be 3.15%.
This is making home loan repayments very expensive for Australian borrowers. And it's also driving property prices down.
Property prices are continuing to slide, which is unsurprising as borrowing costs rise. Prices in Sydney are down 2.8% in the last quarter, and down 1.1% in Melbourne. Nationally, prices fell just 0.2% for the quarter.
There's not much good news for renters, however, with Corelogic stating this month that rents have "hit record highs."