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 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.