Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CoreLogic's Australia Daily Home Value Index posted a new record over the weekend, dropping 8.4% in just eight months as the Reserve Bank of Australia's aggressive rate hikes have raised borrowing costs and sapped consumer sentiment.
The previous record for a peak to trough decline was 8.38% which took 20 months between 2017 and 2019, according to CoreLogic. However, the sharp decline follows a surge in prices of 28.9% between September 2020 and May 2022, which was the fastest rise in home values nationally on record. Sydney home values have posted a peak-to-trough decline of 13%, Brisbane values have fallen 10%, Melbourne dwelling values are down 8.6% from the peak; Perth dwelling values have fallen less than 1% from a peak in August. (See MNI POLICY: RBA Eyes Rent Boom In Fight To Tame Inflation)
The slide in house prices comes after the RBA raised rates a cumulative 300bp over eight consecutive meetings in 2023. Australia house prices fell 5.3% in calendar year 2022 . The RBA next meets on February 7. Many economists expect another 25bp hike to 3.35% at the meeting, though overnight indexed swaps have priced in around 3.25%. The Q4 CPI is due on January 25.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.