Top 3 Weekly Insights - 09/09

Australia has experienced significant inflationary pressures in the past couple of years, peaking at around 7.8% by the end of 2022. This was the highest level in decades, driven by global supply chain issues, rising energy costs, and local demand. As of mid-2024, inflation has moderated somewhat, with a rate of around 3.6% according to the Australian Bureau of Statistics. The Reserve Bank of Australia targets an inflation range of 2-3%, so the current figures remain slightly above that goal.

In Australia’s major capitals, homebuyers have received a significant boost just before spring, as a surge in property listings is expected to ease competition. This increase in available homes is offering buyers more options, which is likely to relieve some of the pressure that has kept prices high in recent years. At the same time, sellers are being advised to be more flexible with their pricing and settlement terms due to the greater supply in the market. This shift could lead to better opportunities for home seekers to negotiate on price and find more favourable purchasing conditions as the housing market becomes more balanced.

In response to rising interest rates in Australia, mortgage offset accounts are becoming increasingly popular as households look for ways to reduce the financial burden. An offset account allows borrowers to lower their interest payments by linking a savings or transaction account to their mortgage, reducing the amount of the loan that incurs interest. This is particularly appealing as higher interest rates make it more expensive to maintain standard mortgage repayments.

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Australian Inflation Rate: Economy Grows At Sluggish Pace

Huge change to make buying home easier

Mortgage offsets on rise as households cope with higher interest rates -?(thenewdaily.com.au)

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