It has been a stressful year for mortgage holders with average mortgage repayments increasing by $1,000 a month since the start of 2022. With less cash to spend on other things, this is now slowing down the economy and we saw this most clearly in retail trade figures released last week. Unfortunately however, inflation is yet to slow and with it hitting a 30 year high of 7.8 per cent in December, it was no surprise that the Reserve Bank of Australia increased the cash rate by 0.25 per cent today.
Supply chains are moving more smoothly again
Construction costs are starting to stabilise
Australia doesn’t always follow the US on every metric but most of the drivers of high inflation are the same in Australia this cycle. US inflation is now coming down and now sits below Australian inflation. Rate rises in this country are slowing as a result.
Rising interest rates are designed to slow the economy and we are finally getting signs that this is happening. Building approvals have pulled back significantly and last week we saw retail trade fall for the first time in over a year. Consumers are finally easing off spending which will be another factor driving down spending.
WE ARE HIRING – PROPERTY MANAGER How to apply: Please email your resume to cath.rayward@raywhite.com About us: Ray White Windsor, Richmond & Pitt Town is apart of Australia’s largest real estate network. With a long-standing history in our local community, we pride ourselves on local knowledge, exceptional customer service and … Read more
Advantages Houses have greater potential to grow in value Can accommodate any type of buyer such as families or singles. Often located in suburban areas Larger internal and external living spaces Can have lots of scope to improve the value and appeal of the property through renovations, additions and landscaping … Read more