What a busy quarter in Real Estate it has been! With everything that’s been going on in both local markets and interstate, it goes without saying that the RBA’s decision to increase the cash rate by 75 basis points over the past two months has certainly demanded centre stage and has everyone talking about interest rates again.

Not since the cash rate was getting lowered seemingly every quarter 10-years ago in the post-GFC correction period, have people paid this much attention to where they may go next. Although the RBA deemed it a necessary action to help control inflation, as the bank’s eventually pass on these new rates, it’s those with a variable-rate mortgage that start to see a new bottom line in their monthly repayments. Due to continued shortage of listings in the inner-city areas, it’s unlikely that we’ll see any immediate price change from this rate rise. With the market undergoing such unprecedented growth in the past 18-months, I don’t think any slowing down of the rising prices could simply be pinned on this decision to pass on a rate increase. Be sure to check out the article written by Domain’s Chloe Breitkreuz that breaks down exactly what a rate increase could mean for both buyers and sellers.

I still believe we are heading towards a real estate ‘sweet spot’ this year, that I spoke about in our last issue, where there will be both; choice for buyers and strong demand for those that are selling. We haven’t yet seen a significant increase in listings, but there are signs that the extreme lack of stock from last year has had its day. Those that sold last year for record prices (some seemed huge at the time) still had frustration when trying to buy. I see this ‘sweet spot’ as a much better market to buy and sell in, whether it’s upgrading or downsizing, having choice makes the whole process more rewarding.

I hope you enjoy this issue of our newsletter – As always, I’m just a phone call, text or email away – I look forward to discussing the market and how all of these changes continue to impact local Real Estate.