The market is changing…

2 months ago•By Jody Fewster

The fragile ceasefire in the Middle East is back on after Iranian strikes on the UAE threatened to end the peace. However, the Strait of Hormuz is effectively closed, and there are still 1600 ships and nearly 20,000 sailors from dozens of countries stranded in the region.
The S&P 500 and Nasdaq closed at fresh all-time highs as the news buoyed investors and lowered oil prices. After a tough 3 weeks, the S&P ASX 200 is also up sharply today, by over 1.2% to 8,783 as I type.
The Aussie dollar is also up US 0.723c.
With inflation rising even before the current oil shock, the RBA had little choice but to raise rates, which it did yesterday to 4.35%. The bite on households is being seen in the Consumer Disc Index, which is at -14.9% year to date. In contrast, the Metals and Mining Indices is +9.2%.
All eyes on the State budget on Thursday and then the Federal Budget on May 12.
On the property front, our State government has moved to define minimum standards for rental properties (a good thing) and an end to no-grounds evictions in WA (a bad thing?), bringing us into line with the rest of the country.
REIWA reports investors are already leaving the Perth market due to uncertainty over possible changes to negative gearing and the Capital Gains Tax discount. With the latest rate rise, I expect to see more investors exit. With building costs rising so dramatically, I can’t see any supply-side relief for our tightly held rental and sales markets.
The market is definitely changing and buyers are more cautious however, population growth and limited supply are holding prices here in Perth.
Times like these require a proven, knowledgeable, and confident negotiator to outline these market dynamics affecting buyers.
So, call me for a plan to navigate this changing environment, and get you moving in the right direction.

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