Cotality estimated four Reserve Bank of Australia rate increases since February had reduced a median-income household’s borrowing capacity by nearly A$90,000, as higher rates added pressure to housing demand.
The company put the reduction at about 9% in its Sept. 29 analysis.
Cotality also said recent tax-policy changes had weighed on demand in some market segments.
The company identified prospective buyers with limited borrowing capacity and borrowers facing higher repayments among those bearing the pressure.
The Reserve Bank of Australia (RBA) raised its cash rate target by 25 basis points to 4.60%, effective Sept. 30.
Cotality says its Home Value Index accounts for property characteristics and revises results monthly for 12 months after initial release. The RBA’s next rate decision is scheduled for Monday, Nov. 2, at 10:30 p.m. ET.
