- The RBA lifted rates to 0.85% yesterday, a higher than expected 50 basis point rise.?Many economists suggest another?increase of 50 basis points is possible in July, although?we are still below the historical average.
- The RBA emphasised the "resilience of the economy" with the national unemployment?rate at 3.9%?and an upswing in business investment underway, plus a long pipeline of construction?work to be completed.
- Higher prices for?electricity, gas, and fuel, in particular, are expected to see the inflation rate at the end of July at 7%.
- The S&P ASX 200 was down on the rate news to a near 3-week low but is now up at 7,121. The Aussie dollar jumped sharply then ended the day back where it started and is now up today at $US .72.
- Ahead of the RBA decision, the latest ANZ Roy Morgan Consumer Confidence rating dropped 4.1% - its lowest since?August 2020 due to cost of living concerns.
- Population growth underpins demand and Australia's population is expected to increase by 4 million people over the next 10 years - amongst the highest in the developed world.
- Real estate has long been considered a hedge against inflation - rising rentals are often intrinsically linked to CPI. All is good for commercial property owners and investors.
- Home prices have slowed predominantly?on the east coast with our prices still rising, albeit?at a slower pace.
- We are still long on serious buyers and short on sellers, so if you are even pondering selling, call me today for a chat about the opportunities this?market and I can offer you.
