With everything that has been happening in local markets, as well as interstate, the RBA decision to increase the cash rate by 25 basis points has certainly demanded everyone’s attention and the conversations at work and socially have been revolving around interest rates ones again.

Not since the cash rate was being lowered seemingly every quarter for around a decade in the post-GFC period, have people paid this much attention to where they may go next. Although the RBA deemed it a necessary action to help control inflation, as the bank’s eventually pass on these new rates, as the bank’s eventually pass on these new rates, it’s those with variable rate mortgage that start to see the bottom line in their monthly repayments.

Due to continued shortage of listings in the inner-city areas, it’s unlikely that we will see any immediate price change from this rate rise. With the market undergoing such unprecedented growth in the last 18-months, I don’t think any slowing down of the rising prices couldn’t simply be pinned on this decision to pass on a rate increase. Be sure to check out the article Domain’s Chloe Breitkreuz That breaks down exactly what a rate increase could mean for both buyers and sellers.

I still believe we are heading towards a real estate “sweet spot” this year, where there will be both; choice for buyers and strong demand for those that are selling. We haven’t yet seen a significant increase in listings, but there are signs that the extreme lack of stock from last year has had it’s day. Those that sold last year for record prices (some seemed huge at the time) still had frustration when trying to buy. I see this “sweet spot” as a much better market to buy and sell in, whether it’s upgrading or downsizing, having choice makes the whole process more rewarding.

Brisbane was the strongest property market in 2021 exhibiting astonishing growth, with many locations experiencing more than 30%  house price growth. And even though growth is slowing in other parts of Australia, Brisbane’s housing markets are likely to continue to perform strongly in 2022.

Call Kath Chown for more information on 0458 912 906