10th December 2024 / Jeremy Desmier: Market Update | 7 & 8 December 2024

The end of the year is almost upon us, with the break for Christmas within arm's reach! We will have just two more auction weekends for 2024 and before we know it, it will be the start of a brand new year.

RBA Interest Rate Announcement:

The eagerly awaited pre-Christmas interest rate announcement saw the Reserve Bank of Australia (RBA) hold the cash rate once again at 4.35%.

REA Group senior economist, Eleanor Creagh, said underlying price pressures, stickier components of inflation, and a resilient labour market have prevented an interest rate cut this year.

Reuters' panel of 44 economists were unanimous in their expectation for the cash rate to be held today, while three of the big banks expect relief to be held off until well into next year.

ANZ, Westpac and National Australia bank are currently forecasting a first rate cut in May, while Commonwealth Bank is sitting more optimistically to a February expectation. Ms Creagh agreed rates were likely to stay on hold in the first quarter.

"This is unless there is an external shock or significant shifts in unemployment or underlying inflation, as it aims to sustainably return inflation to target," she explained.

"Households remain under pressure and consumers remain cautious, choosing to save a large portion of July's tax cuts. Although employment growth continued and the unemployment rate held steady at 4.1% in October, the labour market has softened over the past year. Slowing employment and inflation may prompt rate cuts from May 2025."

While home price growth is currently slowing, it is expected to gain momentum once interest rates begin to fall, though the timing of rate cuts remains uncertain.

Fletchers Auction Weekend:

Over the weekend, over 1,200 auctions were held in Melbourne, with the Fletchers Group achieving a success rate of 64% for our clients.

In Blackburn, three bidders competed to secure the low maintenance lifestyle on offer at 1/4 Tyrrell Avenue. Director & Auctioneer Ben Williams skilfully handled bids and the humid weather before declaring the property sold at $1,555,000.

Achieving a premium result for the court, the exceptional home at 4 Villosa Court in Mill Park was sold under the hammer by the Fletchers Bundoora team for $1,500,000.

Just two auction weekends left to go for 2024! If you would like to get started on your property plans for the new year, please give us a call.