00:02Across the board nationally, we're talking about a fall in home values of 1.2% for the
00:09month of October. But it's when you actually take a look at the cumulative losses over
00:14the past seven months, that's when it paints a much grimmer picture if you are a seller.
00:19So it's actually down by some 8.1%. And over the year, we're already nudging in Sydney
00:26towards a fall of about just under 10%. Now, if we take a look at the state by state
00:32breakdown, you can see that Brisbane and Perth are really leading the charge here when it
00:37comes to those lower values. And it's only Darwin and Hobart that are really bucking the
00:44trend. They have managed to claw into positive territory, but not by a huge amount at all.
00:50And when we talk about $63,000 being wiped off the value of the median house price across
00:58the country, that means that the average national price for a house will set you back just under
01:05$885,000. So what's causing all of these prices to start going lower? Cotality, which has put
01:13together the Home Value Index, says that it's a combination of factors. Of course, we have
01:18weakening consumer and house buyer confidence, and that's caused by these tougher economic
01:25conditions. Of course, the cost of living and those increasing bills, which make people really
01:31consider their budgets when it comes to buying a house. And not the least of which is, of course,
01:37those four interest rate increases that we've seen since the start of 2026. And Gemma, as you've
01:44mentioned, it is widely tipped that we're going to see yet another interest rate increase
01:49tomorrow when the RBA announces its decision at 2.30. That would raise the cash rate from
01:564.6%. And earlier on News Breakfast, we heard from Gerard Berg, who is the head of research
02:03at Cotality. He says that yet another increase in interest rates would put even more buyers on
02:10the sidelines. We're looking at an increase of potentially around about $120 per month
02:16in terms of repayments based off a typical rate hike on the median household. So that just
02:24adds to those pressures, particularly at a time when cost of living pressures are elevated
02:28as well. So it's widely tipped that we will see that interest rate increase, Gemma, because
02:34of course, at the moment, trimmed mean inflation, which is the preferred measure that the RBA likes
02:39to look at is sitting well above its 2% to 3% target band. And it has always said
02:45that it wants
02:46to be able to rein in that inflation genie. Now, that means, of course, not only is it a bad
02:52time
02:53for sellers that might be trying to put their house on the market because of these lower house prices,
02:59it could also be a real struggle for some buyers out there that find that it's a little bit harder
03:04to secure those finances under an even higher interest rate regime. So there are all of these
03:10conditions and factors that go into the big dream of owning your own home. Cotality does believe that
03:18these subdued sentiments will continue throughout the end of the year and into 2027.
