The Property Scene in NSW
- Written by Tim McKibbin
While the market is still digesting last week’s Budget and CPI figures, it will now have to contend with the likelihood of another interest rate rise tomorrow.
The higher-than-expected inflation figure will most likely force the RBA's hand again. For prices, this should result in a continuation of the current easing trend.
For transactions, we can expect the status quo. Deals are getting done where expectations are in line with the new market.
Auctions remain a sound strategy in many markets even though properties may not actually sell under the hammer on the day. Agents are having to work harder and vendors need to understand the buyer’s perspective, especially around borrowing limitations.
For consumers, it seems the price of everything is going up. Borrowing costs, mortgage repayments, rental prices, energy, petrol and more.
At some stage, and hopefully soon, the market will need an opportunity to breathe. To be given a chance to absorb the rate hikes to date.
Last week’s inflation figure represented a 20-year high. In households, budgets are being adversely affected right now.
Looking forward, it would be advantageous for consumers and the market to no longer be subjected to drastic economic reactions like the volley of rate rises we’ve been subjected to since mid-year.
It would be better for Governments and bodies like the RBA to steer a cleaner, gentler course.
