The
decision to keep the cash rate on hold at 4.35% came as no surprise, with most
economists agreeing the next move on rates will be down.
Although
the timing of an RBA rate cut remains uncertain and dependent on inflation
outcomes.
A boost to
confidence
Nonetheless,
the hold decision, alongside lower inflation and a growing expectation that
interest rates will reduce later this year, should help to provide a further
lift in confidence.
Historically
we have seen a close relationship between consumer sentiment and the volume of
home sales.
Following
the 6.2% rise in the February consumer sentiment reading from Westpac and the
Melbourne Institute, a further lift in confidence could be accompanied by a
rise in home purchasing.
This could
add to housing demand that has already remained quite resilient despite the
higher interest rate environment and cost of living pressures.
RealRenta has all the tools that a property manager has but for
less than ¼ the cost of a property manager.
You can now manage
your Residential, Commercial or share/student accommodation property
Join now and the cost is less than a cup of coffee a week to manage your
rental property.
RealRenta also has a free vision, so why not check it out.
Jason Gwerder
Thursday, 21 March 2024
