Free Trial
USDCAD TECHS

Key Support Remains Exposed

AUDUSD TECHS

Pullback Extends, But Still Looks Corrective in Nature

US TSYS

FED Remains in Play Post-NFP/ISM Data

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: Aussie New Home Sales Slide 15% As RBA Hikes Bite

MNI (PERTH)
MNI (Perth)

Australia's new home sales suffered their worst quarter since June 2020 as the Reserve Bank of Australia's cumulative 250bp of hikes since May sapped potential buyers' borrowing power.

New home sales slumped 15.7% in the September quarter according to data released by the Housing Industry Association on Thursday, with home sales in the month of September declining 4.2%. The HIA said the most "acute" tightening cycle in 30 years is occurring at the same time as builders are experiencing the fastest rise in costs in almost 50 years.

The RBA's Financial Stability Review released on Oct 7 warned of further pain for housing The review said 25% of variable rate mortgage borrowers could face a minimum debt servicing ratio of greater than 30% of their income if rates were to be raised another 100bp. (See MNI BRIEF: RBA Warns Of Debt Servicing Pain In 2023)

The cooling of the property market is weighing on sentiment ahead of the peak selling season. PropTrack data released on Thursday showed a 7.55% m/m decline - and 9.25% y/y fall - in new listings. PropTrack calculates national home prices are down 3.4% from their March peak.

Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
True
Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
True

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.