Market Essentials - November 2022

This Month in Review

The RBA increased the cash rate by a further 25 basis points this month, bringing it up to 2.85%. Current rates are still considered modest by economists in light of the highest inflation on record in three decades.

The new Federal government has delivered its first budget this month with a plan to build 1 million new homes over the next 5-years. The plan provides for 30,000 social and affordable rental homes.

Auctions are not showing any signs of slowing down, with 7,382 properties going under the hammer across Australia’s capital cities this month – with a weighted average clearance rate of 62.45%.

The concept of ‘Rentvesting’ is gaining in popularity, particularly among investors and people entering the property market for the first time. The concept is based on renting if you live in a location with higher-than-average property prices, such as Sydney or Melbourne, but investing in cities that are more affordable such as Adelaide or Perth.

And finally, CoreLogic’s CCC Index is showing record surges in construction costs, which have risen more than 11% over the last 12 months. This is primarily driven by higher timber and metal prices. In addition, the sector is experiencing increasing pressure from rising fuel and electricity costs as well as unprecedented labour shortages.

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The Market Essentials Report is compiled by Buyside on behalf of Loanscape.  Founded by Josh Masters, Buyside are registered buyer's agents with on the ground expertise in the Sydney and Brisbane property markets.