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Bi Monthly Market Update | An all but non-existent rental market is driving sales – up up and away!

•By Katy O'Shea

An all but non-existent rental market is driving sales – up up and away!

  • International equity markets have had a wild ride over the last few weeks as inflation concerns (particularly in the US) have rate hikes on the way.
  • Whilst the ASX had its worst month in two years in January, down almost 6%, the RBA’s decision to leave the cash rate on hold at 0.1% and end bond buying gave markets a bit of a boost with the S&P ASX-200 closing up yesterday at 7006. The Aussie dollar is at US$ 70.67c.
  • The December jobless rate fell to 4.2% and the RBA is forecasting below 4% by year-end and 3.75% by the end of 2023 – the lowest level since the 1970s.
  • WA unemployment rate is now 3.4% compared to the national average of 4.2%.
  • Currently almost stagnant at 2.2% growth in the September quarter, wages growth will need to be around 3% before the RBA lifts interest rates.
  • Oil posted its largest January gain in at least 30 years as strong demand and supply constraints drained inventories. Brent Crude is at $US 91.21 a barrel. Some forecasters are suggesting $US 100 a barrel is on the cards. Hence, pain at the petrol pumps.
  • Perth property prices rose 0.6% in January and we are on track for a 10% gain this year. Perth’s median house price is now $531,243, half that of Sydney.
  • The number of homes for sale was up only 3% in January and still half what it was 10 years ago. With the rental vacancy rate still at 0.7% (the lowest level in REIWA’s 40 year recorded history) and rents expected to increase by 10-15% this year, thus people need to be buying.
  • Call me right now to see how this tight market is affecting the value of your property.
Authored by Jody Fewster
Please call 0414 688 988 if I can provide you with a current market appraisal and detailed marketing plan for your home or investment property.
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