6th November 2024 / Jeremy Desmier: Market Update | 2 & 3 November 2024

The race that stops a nation has come and gone, and now we're enjoying the last month of the Spring selling season before the lead up to Christmas.

Interest Rates on Hold:

The Reserve Bank of Australia (RBA) left interest rates steady at 4.35% once again, for the eighth meeting in a row. Whilst the inflation rate has trimmed down to 3.5%, RBA governor Michelle Bullock said, "underlying inflation in the September quarter was still too high".

REA Group senior economist, Eleanor Creagh, commented that "although headline inflation is within the 2-3% target, underlying price pressures and a resilient labour market make an interest cut this year is unlikely."

While many economists predict the cash rate to fall next year, opinions are divided as to when the first cut will take place. Graham Cooke, head of consumer affairs at Finder, says that pressure is mounting for a rate cut in February 2024.

Matt Turner from GSC Finance Solutions notes that cutting the cash rate before Christmas could actually sabotage the RBA's inflation goals by triggering a spending spree. In the meantime, it's full steam ahead for the property market, with auctions expected as late as 21 December.

Homebuyer Wishlist:

New figures show that homebuyers are seeking out new places to live where they can go for a swim, park their car, and enjoy the outdoors. Keyword search data from realestate.com.au has revealed "swimming pools", "garages", and "outdoor areas" as the top search terms across Australia over the past year.

'Single storey', 'air-conditioning' and 'ensuite' were also popular, in addition to 'balcony', 'pet-friendly', 'study' and 'shed'.

Homebuyers were also increasingly searching for 'mortgage' over the past year, up 286% in Victoria and 190% in NSW. Ms Creagh said the rise of 'mortgage' as a keyword was likely people searching for mortgagee, or distressed, home sales.

Auction Update:

Whilst it was a quieter weekend due to the Melbourne Cup public holiday, the Fletchers Group achieved a success rate of 82%. The number of auctions across the country is set to bounce back over the next two weeks, with around 2,900 homes scheduled to go under the hammer.