Residential under-supply perpetuates our ‘Sellers’s market’…
- The RBA lifted rates to 0.85% yesterday, a higher than expected 50 basis point rise. Many economists suggest another increase of 50 basis points is possible in July, although we are still below the historical average.
- The RBA emphasised the “resilience of the economy” with the national unemployment rate at 3.9% and an upswing in business investment underway, plus a long pipeline of construction work to be completed.
- Higher prices for electricity, gas, and fuel, in particular, are expected to see the inflation rate at the end of July at 7%.
- The S&P ASX 200 was down on the rate news to a near 3-week low but is now up at 7,121. The Aussie dollar jumped sharply then ended the day back where it started and is now up today at $US .72.
- Ahead of the RBA decision, the latest ANZ Roy Morgan Consumer Confidence rating dropped 4.1% – its lowest since August 2020 due to cost of living concerns.
- Population growth underpins demand and Australia’s population is expected to increase by 4 million people over the next 10 years – amongst the highest in the developed world.
- Real estate has long been considered a hedge against inflation – rising rentals are often intrinsically linked to CPI. All is good for commercial property owners and investors.
- Home prices have slowed predominantly on the east coast with our prices still rising, albeit at a slower pace.
- We are still long on serious buyers and short on sellers, so if you are even pondering selling, call me today for a chat about the opportunities this market and I can offer you.Authored by Jody FewsterPlease call 0414 688 988 if I can provide you with a current market appraisal and detailed marketing plan for your home or investment property.