Ray White Kiama

The main event looming on the near-term horizon that may accelerate any slow down phase is if the central bank adjusts monetary policy sooner rather than later. Financial markets and economists believe inflation pressures will force the RBA to start normalising rates by August, ahead of the spring selling season. While inflation “has picked up more quickly than expected”, the central bank is not ready to conclude that inflation will remain sustainably within their 2-3% target range. Uncertainty related to the war in Ukraine, rising energy costs and global supply chain disruptions are adding further complexity to the policy environment. While the unemployment rate is trending towards the sub 4% range, a more significant lift in wages remains the missing piece of the puzzle before the cash rate shifts higher. Despite the growing downside risks to the housing sector, other factors should help to offset a significant downturn. As the economy strengthens and labour markets tighten, the risks around mortgage stress or default should lessen. Open international borders will help to support demand. The number of properties for sale will also increase over 2022 which creates more choice for buyers. What we do know is that market fundamentals right now are still helping our clients who are looking to sell. Our data tells us that our sellers who choose to sell via the auction method are rewarded with a 12% higher price under the hammer than if they’d accepted a prior offer. Since the start of 2022, we’ve cleared 81% of all auction stock under the hammer, with an average of 5.8 registered bidders. There’s a deep buyer pool for sellers to take advantage of right now. Our question remains, “What are you waiting for?” Michele Lay & Matthew Lay Directors & Licensee, Ray White Kiama WHAT’S HAPPENING IN OUR MARKET?