Rising Interest Rates Reduce Australian Buyer’s Borrowing Power by 20%
In Australia, five interest rate rises since May have reduced the average loan size that home buyers can qualify for by 20%, according to the Reserve Bank. The cash rate jumped from 0.1% in April to 2.35% in August. As a result, a double-income family earning the nationwide average of A$184,000 (US$119,416) can now borrow A$264,000 less, putting downward pressure on house prices. In August, median house values in Sydney dropped 7.6% since peaking in May, while Melbourne’s fell 4.6%, the latest CoreLogic Home Value Index showed. Domain
A Charming 17th-Century Cottage in the Cotswolds, England, Hits the Market
A 17th-century, Grade II-listed property in the Cotswolds, England, has hit the market for £795,000 (US$857,964). Known as the Orchard Cottage, the home has four bedrooms, a sitting room with an inglenook fireplace, and a kitchen with exposed stone walls and elmwood cabinets. Historic details include uneven walls, exposed beams, flagstone floors and mullioned windows. The home is located in Saintbury, a small hamlet within a conservation area as well as an Area of Outstanding Natural Beauty. Country Life
Interest Rate Hikes Will Have No Major Impact on Dubai’s Property Market, Experts Say
Despite continuous interest rate rises, Dubai’s property market will continue to expand at a steady pace, experts say. Home transactions attached to a mortgage account for only a quarter of home sales in Dubai, according to Haider Tuaima, director and head of real estate research at ValuStrat. “There’s no doubt that higher costs of borrowing negatively impacts the real estate market. For Dubai however, that impact is not expected to be severe,” he said. The interest rates are still relatively low compared to historical values, added Robert Thomas, head of agency at real estate consultancy Core. However, “further interest rate hikes coupled with rising inflation are expected to impact disposal incomes and real estate investment potential for mid-income end-users,” Mr. Thomas said. Khaleej Times
Wallace Neff-Designed Tudor-Style House in Los Angeles Sells for $4.1 Million
A Tudor-style house designed by famed architect Wallace Neff in the 1930s in the Hollywood Hills neighborhood of Los Angeles has sold for $4.1 million. The buyer is Bailey Sarian, a YouTuber known for her “Murder, Mystery & Makeup” video series. The home has 3,700 square feet of living space with three bedrooms, three full bathrooms and one powder room. Outdoors, there is a pool, a full kitchen with a fire pit, wraparound formal gardens and multiple patios. Sitting atop a high knoll, the property has unobstructed views of the city skyline. Dirt