Signs Market is Cooling with Tree-Changers Retreating & the End of the Low Interest Era
Will the market cool with tree-changers retreating & the end of the low interest era??
The Financial Review warns of a tree-changers retreat & a looming fall in regional house prices. Louis Christopher of SQM Research says “Probabilities have increased that sometime next year, we will see a peak in prices and regional Australia will start to see falls” “We’re now at a point where lockdowns are ending and travel is restarting, so I’m expecting to see a swing back towards the cities” Sydney Morning Herald journalists Shane Wright and Jennifer Duke expect a rate rise ahead of the federal election & the end of the low interest era “Official interest rates could rise before Prime Minister Scott Morrison goes to the next election, with clear signs the Reserve Bank’s hand may be forced much earlier than expected”
SOURCE: The Financial Review The Sydney Morning Herald The Sydney Morning Herald notes an expected a rate rise ahead of the federal election and the end of the low interest era.
House prices in some regional areas could start falling as early as next year as the lockdowns end amid high vaccination uptake, and more people return to the cities, according to SQM Research.
Official interest rates could rise before Prime Minister Scott Morrison goes to the next election, with clear signs the Reserve Bank’s hand may be forced much earlier than expected to head off inflationary pressures that are set to drive up the cost of Christmas presents.
The nation’s biggest lender, the Commonwealth Bank, believes interest rates will rise next year due to an economy that is likely to expand by 4.4 per cent in 2022.
CBA head of Australian economics Gareth Aird said this was due to the higher and faster than expected take-up of coronavirus vaccinations in NSW and Victoria and earlier re-openings.
Looks like the market will be cooling soon, time to hit the market now. If you’re considering hitting the market in the next 2 years now is the time. If you’d like to know where your property sits in todays market, reach out to us for a complimentary appraisal.
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