A new report suggests that Melbourne is set to have the worst performance for property prices by the end of the year, compared to other capital cities.
In a report released by realeastate.com.au on Thursday, Victoria’s capital is on track for a four per cent decrease in prices by the end of the year.
These figures will see the median price of a Melbourne property drop from $995,000 to $955,200 – a $39,800 drop.
Sydney is predicted to see a three per cent decline in property values.
All other capital cities, however, are predicted to record price growth by end of the year.
These drops for Melbourne and Sydney come despite the RBA decision to hold interest rates on Tuesday.
On Tuesday, the Reserve Bank of Australia announced its decision to keep the cash rate at 4.35 per cent, following three previous rate rises.
RBA Governor Michele Bullock refused to rule out the rate increasing again if needed.
Previous interest rate hikes from the RBA put downward pressure on property prices.
Mr Moore told SkyNews.com.au on Monday that the rate increases were “weighing on buyer demand.”
“The fact that we’ve seen three rate hikes is clearly weighing on buyer demand; it’s reducing borrowing capacities that are flowing through to what we’re seeing in auction markets,” he said.
“It’s also flowing through to home prices, which have been largely stalled out nationally.”
For a household owing $600,000 on a 25-year mortgage, the three previous rate hikes will have added $272 to monthly repayments.