First home buyers test market as new property rules kick in
New rules require reserve prices to be published 7 days ahead. These rules came into effect on October 1. Interest rates hit 15-year highs at that time.
Warrnambool's weekend auctions were the first real test of new selling rules. They also tested the Reserve Bank's fourth rate rise this year.
First home buyers remained active despite the cash rate climbing to a 15-year high. One couple bought a renovated three-bedroom on Monash Avenue for $460,000.
Another property sold for $725,000 after negotiation. Real estate agents say the new rules will lift standards.
The rules apply to auctions and private sales. They won't fundamentally change how properties trade.
A grace period until October 15 means some agents haven't yet shown reserve prices.
- 460,000 dollars
- Monash Avenue sale
- 725,000 dollars
- Maguire Place final price
- 15-year high
- Interest rate milestone
- 5 scheduled
- Auctions tested
Why it mattersFirst home buyers need to understand new transparency rules. They also need to know that higher rates mean their borrowing power has shrunk.
AustraliaAustralian property buyers face tighter lending criteria and must shop harder for loan discounts as rates rise and house prices fall.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
Open this story in InSnip →
