RBA UPDATE | Effective November 6, 2024
The Reserve Bank of Australia (RBA) has decided to hold the official cash rate at 4.35% once again, marking a year since it’s last change.
In the RBA’s most recent forecast, taken as of 30 October, the central bank anticipates that the “[official cash] rate will only see its first reduction by the middle of next year,” as reported in The Guardian.
Despite no relief for borrowers, the RBA board stands by their decision in line with “sustainably returning inflation to target within a reasonable timeframe,” which remains their highest priority.
While property prices have reached record highs in the major capitals, experts say the market may be turning in favour of buyers; and with properties staying on the market longer this means negotiation opportunities are on the rise.
The latest Domain House Price Report shows record highs in cities like Perth, Adelaide, Brisbane and Sydney. Perth led the way with a 25.3% annual increase, followed by Brisbane at 14.8% and Sydney at 6.1%.
Despite these highs, growth rates are slowing due to affordability constraints and the cost-of-living crisis. Sydney and Perth’s quarterly growth halved, while Brisbane’s rate fell by a third. Even Melbourne and Canberra saw slight declines too.
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