Interest rates remained on hold on Tuesday, May 7 following the RBA meeting.
Ray White Chief Economist Nerida Conisbee reported the following: ”Inflation is now sitting at 3.6 per cent, higher than hoped, but still showing a decline from 4.1 per cent recorded in December.
"While it's great news inflation is coming down, it's still above the Reserve Bank of Australia’s target of between 2 and 3 per cent and additionally is not coming down quick enough to cut rates in the near future. The March inflation figures changed the outlook for interest rates dramatically. Whereas on the morning of April 24, markets were pricing in a cut for October 2024, in just 24 hours, this timing had changed to April 2025.
"Looking at data at this exact point in time suggests no cut in 2024. However, as we consistently see, the outlook can change dramatically depending on what data is released. The next major data release which could change the outlook significantly are economic growth figures to be released early June 2024. If we see a decline in GDP, it may be enough to push the RBA to move more quickly, perhaps even cutting rates while inflation remains above three per cent.”
Our local real estate market has been taking all this information in its strides with some fantastic results above expectations recently:
- 20 Shannon Drive, Helensburgh – sold $1,580,000, 30/04/2024 by Ray White Helensburgh
- 16 Haig Street, Wombarra – sold (price withheld - $6,000,000 plus), 29/04/2024 by Ray White Helensburgh
- 40 Lady Wakehurst Drive, Otford – sold $3,150,000 29/04/2024 by Molenaar & McNeice
- 12 Young Street, Coledale – sold $2,850,000 29/04/2024 by Ray White Thirroul
About the writer
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.
