On today’s RBA meeting and anticipated rate cuts, Emily Wallace, Founder and Director of Wallace Advocates shares:
“Regardless of how much the cash rate drops by, anything in a downward direction will most likely result in positive sentiment for the market. A number of buyers have been holding off to see what the RBA will do so this may spark extra buyers into the market if the drop does come on Tuesday. More generally, 10 or 25 basis points won’t see the market explode. I suspect it will be a slow burn through 2025 before the market truly takes off and experiences strong upward values.”
On major auction weekends, she shares:
“Feb 22 and March 1 are two major auction weekends, noting that the Labour Day weekend impacts the flow of auctions (minimal held on March 8).
The real estate industry is very eager to see how these weekends play out to gain a true sense of the direction of the market for 2025.
The public should be aware that the clearance rates aren’t the only statistic to focus on. If you are attending an auction, note carefully the percentage difference between the reserve price and the sold price. The higher this percentage, the hotter the demand for that type of property. I would also encourage buyers to note how many people are bidding at an auction. 1-2 bidders would be a buyers market, 3-4 bidders would be a balanced market, 4+ bidders would be a seller’s market.”
On today’s RBA announcement, Director of Palise Property, Steve Palise shares:
“The great news is that inflation is under control. Due to this we will likely get a rate reduction on the 18th. If not, it is very likely to happen this year. To keep in mind that property is a long-term investment and this should always be your focus. You need to weather low interest rate environments as well as high interest rate environments.
Trying to play the short term property game is fraught with danger, even expert economists cannot get it right. One point is to note that it is Australians who were the ones who constrained spending to ensure inflation dropped. Everyday Australians caused inflation to drop, the governments spent more money in the last year.”
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