Australia's Housing Market Cools: What's Next?

0:00This is Corey, here with your quick two-minute update from Sydney news today. Australia's hot housing market might be starting to cool off. Auction clearance rates, which show what percentage of home sell at auction, have dropped sharply over the past two weeks. This is especially true in big cities like Sydney and Melbourne, where prices are barely rising or even slipping. Earlier this year, experts predicted home values would climb 7-10% across the country. But now those forecasts are fading fast. In Sydney, values were flat last month, and they could end up slightly lower by month's end. Melbourne has faced even tougher times lately. Sellers are reacting by flooding the market with new listings. Last week, they jumped 58% from the week before. And even after accounting for holidays, auctions are up 16% from last. Year, buyers though, are holding back amid all the uncertainty. Higher interest rates look likely soon, as economists change their tune on the reserve bank pausing.

1:01Oil prices are surging from the Middle East conflict, pushing inflation fears toward 5%. Plus, taco tweaks to capital gains tax is scaring off investors. The road ahead depends on how long the war drags on and other pressures. Even so, Australia's deep love for owning homes could keep things from crashing too hard. For now, it's a sign that easy gains might be over. This story is shared with support from our sponsor. Do not just fall asleep, drift into what you are listening to. S-O-L-I-SoliPillow.com