Posts

Recent

Recession Housing Price Discussion Overlaps Rate Hold

RBA Commentary for September 2019
The official cash rate sits at 1.00% as: ·Inflation sits around 1.6%; ·The Australian dollar fell to 0.67c US; and ·Unemployment stays at 5.2%.
The word ‘recession’ strikes fear into the hearts of anyone who hears it mentioned. So, when economists start discussing if the rebound in housing prices is going to be short-lived due to a looming recession, naturally the ears of homeowners within hearing distance prick-up.
Now while the word recession sounds formidable, the fact that housing prices are starting to recover from a slump, and that the Reserve Bank of Australia has once again left rates on hold are both favourable.
Why?
Well, let’s take an in-depth look at what’s occurred recently, and in the past, so we can put your mind at ease about recession and it’s impact on housing prices.
Recession Housing Price Discussions
Economists are talking about a recession. Now for those of you who don’t know what a recession is, it is defined as two fiscal quarters (s…

National House Prices Rise As The RBA Holds, But For How Long?

Image
RBA Commentary for August 2019

The official cash rate sits at 1.00% as: ·Inflation hovers around 1.6%; ·The Australian dollar fell to 0.68c US; and ·Unemployment sits around 5.2%.

CoreLogic announced on August 1, 2019, that national housing prices across Australia had risen, albeit marginally, prompting the Reserve Bank of Australia (RBA) to leave rates on hold.
Despite this move by the RBA, homeowners are welcoming the news of national home price growth as this is the first time in two years that national dwelling prices have shown positive signs. This change, however, also has many owner-occupiers and investors questioning whether or not this is an indication that the market is about to turn for the better.
In light of the announcement by CoreLogic, the Reserve have left the official cash rate on hold for August. But economists are suggesting that if inflation continues to stall,and doesn’t meet RBA targets, then it’s likely that rates will get cut again. Some economists are even specula…