Interest Rates Pause, Inflation down, Unemployment Dips to 3.5%

The latest inflation figures, which came out earlier this week, are down to 7%. (Govt Source). That is still well in excess of the Government inflation targets - which are approximately 3%.

Unemployment has dipped to the lowest level in 50 years to 3.5% (Govt source). This will no doubt add more pressure on to wages which is good for employees but not for employers.

The million dollar question is whether the Reserve Bank of Australia will keep interest rates on hold until next Tuesday, 2nd May 2023 when the Reserve Bank meets next. Last month the Governor of the Reserve Bank - Mr Phillip Lowe - put interest rates on hold but no one knows for how long. 

There is no doubt that the previous 10 consecutive interest rate increases have definitely caused plenty of mortgage stress for millions of Australians.

In Real Estate, stock levels are down by 30% (source REA) and Auction clearance rates in Sydney are averaging 70% over the last two weeks (source Domain).  “Less stock means higher prices” said NGFarah senior partner Cameron Airlie.  Sales have been strong for the Airlie team in 2023, who specialise in the Maroubra and South-Eastern Sydney region. Team Airlie have sold 30 properties, so far, in 2023.

Rentals have increased, by 20%, over the last 12 months, according to NGFarah’s head of Property Management Damien Caruana.  Our Vacancy rate is now less than 1%.  Mr Caruana believes the rental market will ease up during the winter months providing a little more comfort for tenants. 

At present, migration & tourism in Australia is strong, which puts added pressure on the rental market.