Hey everyone, Ian here from Extra Realty with your weekly market update. Let’s dive into what’s happening in the property market as we approach the end of 2024.
There’s been a lot of speculation about when the RBA might cut the cash rate. I’ve been thinking we might see a rate cut as early as December or early next year, especially given the current cost-of-living pressures and the squeeze on household budgets. A rate cut could offer much-needed relief for mortgage holders, especially heading into the Christmas season.
However, some experts are less optimistic about an early rate cut. Economist Dr Andrew Wilson recently suggested we might not see any Cuts until much later in 2025. According to Dr Wilson, the RBA is being very cautious. They’re focused on making sure inflation is genuinely under control before they make any moves. They’re wary of a premature cut that could reignite inflation, so while a rate cut might eventually stimulate buyer demand, we may need to be patient for a bit longer.
On the housing front, affordability remains a significant issue. Did you know property prices have grown three times faster than wages over the last four decades? Right now, the national median house price is over $800,000; in the capital cities, it’s averaging above $1 million for many. This makes homeownership feel increasingly out of reach.
Especially with Australia’s population set to grow by 330,000 people each year and speaking of Supply pressures, construction is slowing down. Rising costs and supply chain issues are causing delays, making it challenging for Builders to keep up with demand.
This could further tighten the market, especially as new projects are put on hold. But it’s not all doom and gloom. There are still great opportunities if you’re considering buying a new-build property or SMSF property.
If you’ve got questions or need advice on your property Journey, I’m here to help. Thanks, and I’ll catch you next time
