Interest Rates & Gov
Key Interest Rate data & Government activity impacting the Sydney property market
April, 2024
With inflation proving more difficult to shake than first thought, experts are now divided as to when we may see the cash rate come down, if at all in 2024. The general consensus is that we may see this happening later in the year, vs earlier predictions that saw it taking place as early as May.
With the housing market off to a flyer, what exactly will this mean for prices? Domain has come out this week forecasting that Sydney prices are still likely to climb 7-9% with national prices to move upwards 5-7% even without any significant change in the cash rate.
Factors such as strong population growth and a significant drop in new home build approvals brought on by the higher cost of construction as well as labour shortages creating a backlog for completions are mostly at cause and also a big reason why we've seen rents climb by some 40% over the last 24 months.
Read on for more... https://www.domain.com.au/advice/housing-market-1275167/
October, 2022
In a positive sign for mortgage payers, the last round of rate hikes may signal the end of aggressive hikes in this particular cycle. Bumping the cash rate by .25 basis points vs the full half a % shows the RBA may be looking to sit back and observe how the market responds, particularly inflation which seems to have peaked and is now becoming less of a panic point. For the property market this may also mean the worst price declines are behind us as we move into a more stable period where buyers and sellers alike can predict outcomes and more accurately plan their go to market approach.
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May, 2022
After 11 dazzling years for property, the RBA has put in place an increase in interest rates to 0.35%. Coupled with the upcoming federal election creating further anticipation, some say this has a reflection on the property market. Ultimately, any disruption in the economy has an impact on the property market, but perhaps the impact is more a matter of personal perception. For first home buyers, this may provide the opening they have hoped for whereas for the investor it may boost a portfolio by pushing up prices in the apartment space as these become the more affordable option.