Auction Clearance Rate Slumps The Reserve Bank Governor General, Philip Lowe, has increased interest rates by .025% to .035% at their recent monthly meeting which was held on the first Tuesday of May 2022.

The Reserve Bank Governor General, Philip Lowe, has increased interest rates by .025% to .035% at their recent monthly meeting which was held on the first Tuesday of May 2022.

The increase in interest rates had been widely predicted by many leading economists and banks as inflation and living costs spiral to record highs. With the federal election looming in less than a fortnight, auction clearance rates were recorded below 60% last Saturday the 7th of May 2022.

We believe that the real estate market tends to hit a pause button during the lead up to a federal election as Australians become preoccupied with the election process. The same thing happened in 2019 leading up to our federal election and once the election was over things slowly returned to normal.

This is making it a lot easier for first time buyers and buyers in general who have had a difficult time over the last 3 years as real estate prices have increased by no less than 20% each year. Interest rates are still at record lows, even though we will experience continued rate increases over the next 18 months.

We believe the market peaked around September 2021 and since then we have seen prices come back by approximately 10% this has been an encouraging sign for inspiring home buyers and investors.

The share market has seen a lot of volatility in the past weeks which is good news for real estate in general terms. The big four banks have recorded a record amount of investor loan application, as investors move out of the stock market and put their money in bricks and mortar.

Notwithstanding there are still at least 250,000 expats that will come home to Australia in the next 12-18 months. This will keep demand strong for quality properties.