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Australia’s auction market sees a drop in the preliminary clearance rate, a bank has warned that Aussies may not see a cash rate cut until 2025, and what’s in the government’s ‘Homes for Australia’ plan?

Welcome to Property Buzz! I’m Orana Durney-Benson.
Today is Tuesday, the 14th of May, and the preliminary clearance rate has decreased compared to the week before, according to data from CoreLogic.
– Melbourne and Sydney both saw decreased auction performance last week, with Melbourne recording a clearance rate of just 68 per cent, and Sydney seeing 76 per cent of auctions end with a sale.
– The outlook was stronger across the smaller capitals, with Adelaide leading the way with a clearance rate of over 91 per cent.
– CoreLogic predicts that auction volumes for the coming weekend will be similar to last week, with just over 2,000 homes scheduled for auction.  

Turning to the cash rate, Bendigo Bank has dismissed hopes for a rate cut this year, predicting that the 4.35 per cent cash rate will not budge until 2025.
– The bank’s chief economist, David Robertson, pointed to a low unemployment rate, stubborn core inflation, and weak retail sales as indicators that high cash rates are not over yet.
– While rate cuts have begun overseas, with Sweden’s central bank and the European Central Bank making moves, Robertson believes the RBA will not ease the cash rate this year.

And Prime Minister Anthony Albanese has unveiled a multibillion-dollar “Homes for Australia” plan to address the country’s housing crisis, including $9.3 billion for social housing and homelessness over the next five years.
– The plan also includes $1 billion for infrastructure to support new residential development, and a further $1 billion for crisis and transitional accommodation for youth and victims of domestic violence under the National Housing Infrastructure Facility.
– The government will also work with universities to increase student accommodation supply, and has earmarked $90.6 million to boost the construction workforce through fee-free TAFE funding and streamlined skilled migrant visas.

That’s all for today.

See you again tomorrow, the 15th of May, for your daily dose of Property Buzz.

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