Experts predict another cash rate rise

Oksana Patron

5 September 2022

Almost all experts (97%) expect a further change in cash rates, with two thirds  believing that there will be an increase of 50 basis points, bringing the cash rate to 2.35% in September, according to the Finder RBA Cash Rate Survey.

However, the majority of experts expected the RBA to then hold the cash rate in October.

Following this, a growing number of homeowners were feeling the pinch, with the average homeowner potentially paying $801 more a month, or $9,608 a year, compared to April.

At the same time, property priced tipped to fall 5-10% by 2023 in Sydney, Melbourne and Brisbane.

However most panellists forecast either no change, or a drop of just 5%, in Perth (72%), Adelaide (67%), Canberra (72%), Hobart (56%) and Darwin (78%).

While the housing market dip might be worrying for some, Finder research showed nearly a third of Australians (30%) were hopeful that falling house prices might help them get their foot on the property ladder.

Richard Whitten, money expert at Finder, said that rising interest rates were making it more expensive for homeowners to service a mortgage, and more difficult for investors to turn a profit on rental properties.

“This has a natural dampening effect on the price people are willing to pay for a home.

“Unless you’re planning to sell your home, you don’t need to pay much attention to falling property prices. In the long run, property is still an excellent way to accumulate wealth.

“If you are in a position to buy, the next 6 to 12 months could be a good opportunity to score a better deal on your dream home – as long as you can afford your home loan repayments as rates rise,” Whitten said.

Also, despite the escalating cost of living, the majority of experts (82%) were not in favour of the government introducing price controls on energy or food