Subject: Strong auction volumes weigh on house prices

⚡️ Highlights:

1. The national clearance rate for auctions in Melbourne and Sydney has declined to 62.0%, with Melbourne's final auction clearance rate falling to 59.3% and Sydney's to 62.4%.
2. The increase in auction volumes, with 2,756 auctions held last weekend, has contributed to the decline in clearance rates.
3. Price growth in Sydney and Melbourne has been flat over the past 28 days, reflecting the decline in auction clearance rates.
4. The Reserve Bank of Australia is expected to deliver further interest rate increases following a strong inflation report, with a 100% likelihood of an increase in May and potentially more hikes by the end of 2026.
5. Each 0.25% increase in mortgage rates will add $116 in monthly repayments on the average $736,000 new mortgage, potentially leading to a cumulative increase of around $350 in monthly mortgage payments if the RBA hikes three times this year.

✍️ Leith van Onselen | Full Article

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