Market Pulse
What moved this week?
1. The RBA held the cash rate at 4.35% on 16 June, with no cuts tipped until 2027.
2. Auctions had their worst weekend since the pandemic, with just 47.4% of homes selling under the hammer, the lowest clearance rate since April 2020.
3. First home buyers are piling in, now making up 29% of all owner-occupier lending as the expanded 5% deposit scheme helps more people buy with less savings.
What it means for you:
The market has tilted toward buyers, especially in Sydney and Melbourne where prices are easing.
When sellers are discounting and stock is rising, you can negotiate harder. If you're ready to buy, a confident offer below asking has a real shot right now.
Negotiation Tip
One tactic to pay less and buy smarter
Ask the agent why the vendor is selling
Before you make an offer, ask the agent one simple question: "Why is the owner selling?"
A divorce, a job relocation, or a deadline to settle on their next home means a motivated seller, and motivated sellers accept lower offers.
With clearance rates in the 40s and homes sitting on the market longer, time is on your side.
Check how long the place has been listed too. The longer it's been up, the more nervous the seller, and the more room you have to come in under asking.
And remember, price isn't the only thing on the table. Things you can ask for:
A settlement date that suits you (longer to save more, or shorter if you're ready)
A lower price (start below asking, especially on a long-listed home)
A smaller deposit to ease your upfront cash
The Data
What it means for you:
The auction clearance rate is the quickest way to read the market's temperature.
A high rate (above 70%) means buyers are competing hard and prices tend to rise, a sign of a hot market.
A low rate like this week's (under 50%) means there are more sellers than keen buyers, which usually leads to slower price growth or even small falls.
A softer clearance rate leads to less competition and more room to negotiate.
Suburb Spotlight
Werribee VIC 3030
Unsure how these stats affect capital growth?
Check out our Instagram that breaks down each term.
Reader Question
What is LMI?
LMI is Lenders Mortgage Insurance. It’s a policy that protects the bank, not you.
If you borrow more than 80% of a property's value and later can't repay, LMI covers the lender's loss. You pay for it as an additional fee that can be added to your loan.
It kicks in whenever your deposit is under 20% (an LVR above 80%). The smaller your deposit, the bigger the premium.
Roughly what it costs: on a $600,000 home with a 10% deposit, LMI lands around $10,000 to $15,000. You can usually add it onto your loan instead of paying upfront, but then you pay interest on it for the life of the mortgage.
Three ways to avoid it entirely:
Save a 20% deposit
Use the First Home Guarantee (buy with 5%, zero LMI)
Have a guarantor use their equity to cover the gap
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That’s it for this week.
Keep showing up, keep working toward your property goals.
Your future self will thank you for it.
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This newsletter is general information only and does not constitute financial advice. It does not take into account your personal circumstances, please speak to a licensed professional before acting.
Finvyne Team
