Australian homeowners did not see the spate of rate hikes coming and more than half believed the figure would not climb so high.<\/p>\n
The Reserve Bank upped the official interest rate to 2.6 per cent this month.<\/p>\n
It was the sixth straight month rates have risen after being as low as 0.1 per cent in May.<\/p>\n
Other Lendi Group data detailing consumer activity between May and September found refinancing inquiries were soaring after the rate rises.<\/p>\n
They’ve seen 157 per cent more inquiries on rate-rise Tuesdays compared with other Tuesdays and 107 per cent more on Wednesdays after hikes.<\/p>\n
Meanwhile, home sales have fallen by 15.7 per cent.<\/p>\n
That’s the weakest quarter since June 2020 and Australia’s lockdown, which helped create the first recession in almost 30 years.<\/p>\n
“This reflects the increasing weight that the RBA’s tightening cycle is placing on home buyer borrowing capacity,” HIA economist Tim Reardon said.<\/p>\n
“The RBA increased the cash rate again in October, and this will further accelerate the decline in new home sales.”<\/p>\n
Growth in apartment rents is outstripping houses as budget-conscious tenants are priced out and foreign students return.<\/p>\n
Capital city units saw the highest quarterly and annual growth ever recorded by Domain, with the rental squeeze showing few signs of easing.<\/p>\n
Unit rents were up 6.5 per cent over the September quarter and 16.7 per cent annually.<\/p>\n
House rents lifted 1.9 per cent over the quarter and 12.8 per cent for the year.<\/p>\n
Rapid growth in house rents has priced out some renters who are now looking at the more affordable rental market, adding to demand for flats.<\/p>\n
The return of foreign students has also ramped up demand for units,\u00a0Domain research and economics chief Nicola Powell said.<\/p>\n