Markets15 March 20235 min read
March 2023: SVB collapses — and the RBA pauses
Silicon Valley Bank failed on 10 March. Global rate expectations collapsed inside a week. The RBA hiked once more in April and then held.
The pause
On 4 April 2023 the RBA held cash rate at 3.60% — the first pause of the cycle. Property markets re-rated within days. CoreLogic posted +0.6% nationally for April, the first positive month since April 2022.
The bottom was in
The peak-to-trough drawdown was 9.1% nationally — sharp, but shallow by historical standards. The recovery that began in April 2023 ran through to the next correction in mid-2024.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.