Impending interest rate rise puts renovation dreams at risk
They’ve invested in a home for the future but renovators fear their plans will be brought to a halt as Australia braces for a seventh consecutive interest rate hike.
SA News
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South Australian renovators are bracing to put tools down as a seventh consecutive interest rate hike threatens to put dreams on hold.
Nearly all leading economists expect a 0.25 per cent increase in the cash rate to be announced Tuesday afternoon as the Reserve Bank of Australia struggles to tame inflation.
Occupational therapist Lana Feichter, 26, and partner Oliver Parham, 28, a pilot, are among homeowners fearing their renovation plans will be brought to a halt.
The young Peterhead couple recently bought their home through Ray White North Adelaide’s Rachel Lawrie.
Ms Feichter was concerned about the impact of an interest rate rise on her plans for a renovation.
“We won’t be able to do it at the speed we would like … We were hoping to renovate the whole house but now we may have to focus just on the areas we use often,” she said.
The expected monthly increase comes as South Australia’s property market continues its show of strength, bucking a national trend to be identified in a new report as the strongest performing capital city over the past 12 months.
According to the PropTrack’s latest Home Price Index report, Adelaide home prices over the past 12 months have increased by 14.23 per cent to a $650,000 median – a new price peak for our capital city.
Adelaide house values also recorded strong growth for the month, up 0.12 per cent.
SA was also identified as having the strongest regional market, with home values up 0.61 per cent for the month and 17.76 per cent over the past 12 months to a $366,000 median – again, a new price peak.
In contrast, metro home prices nationally fell by 0.06 per cent for the month and were down by 2.08 per cent for the year.
Nationally, regional properties were up by just 0.06 per cent for the month, and 6.49 per cent over the past 12 months.
Adelaide is the only capital city to not have recorded a decline from its price peak, while both Tasmania and the NT’s regional markets were both also deemed to be at their price peak.
PropTrack senior economist Eleanor Creagh said demand for more affordable regions and larger homes had buoyed the Adelaide market and would likely continue to do so.
“Rising interest rates have quickly rebalanced the housing market from last year’s extreme growth,” she said.
“Sellers are adapting to market conditions, while buyers are taking advantage of the less competitive conditions relative to spring last year.”
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