Rates on hold, next move likely down
By Ian Pepper, of Ray White Helensburgh With inflation now trending downward, rates remained on hold again this month. At this point, barring any unexpected events, it is likely that they will remain at current levels for some time. The next...
By Ian Pepper, of Ray White Helensburgh
With inflation now trending downward, rates remained on hold again this month. At this point, barring any unexpected events, it is likely that they will remain at current levels for some time. The next movement is likely to be a cut, however, this is unlikely to happen this year.
Today was the last meeting for Reserve Bank outgoing boss Philip Lowe and he elected not to surprise markets by holding rates steady at 4.1%.
Housing costs are still concerning, but construction costs are stabilising, with a year-on-year growth rate of 5.9%, the lowest since October 2021. Supply chains and labour shortages are improving. However, rents continue to rise with a lag effect on inflation (although this seems to be stable in our area).
Current interest rates are hindering new home construction, leading to fewer approvals in a decade and discouraging buyers.
In our local real estate market, listings typically jump each week as we head further into Spring. This year is no different, especially along the coast between Austinmer and Stanwell Park. Listings according to realestate.com.au as of today, 5 September 2023:
- Stanwell Park – 9
- Wombarra – 10
- Coledale – 11
- Austinmer – 17
These numbers are much higher than a year ago and are likely to keep increasing during September and October.
However, with the positive interest rate decision today, there is hope the Sydney buyer will return to our coastal market and again buy into the wonderful lifestyle where we live.
About the author
Ian Pepper has had a long and distinguished career as a finance and real estate professional. Originally trained as a Chartered Accountant in 1995, Ian worked in Sydney and London. He has an MBA from Macquarie Graduate School of Management and now sells real estate with Ray White Helensburgh. Ian also volunteers with local community groups including school P&Cs, sporting clubs and business chambers.
