RAY WHITE NOW THIS MONTH
When will price declines stop ? Right now , it ’ s still very uncertain although , based on our best measure of demand , the absolute worst of the downturn is behind us . Average active bidders at auction hit a low of 2.3 bidders per auction in July 2022 but this level has started to creep upwards . We ’ re nowhere near where we were last year - not surprising given how strong the market was in 2021 - but buyers are returning which looks like it will prevent the sharp falls in pricing .
The wildcard however continues to be inflation and its impact on interest rates . While fuel prices and supply chains are improving , we still have a lot of problems with construction costs and rents . This month the Reserve Bank of Australia ( RBA ) increased interest rates less than expected ( 0.25 per cent instead of 0.5 per cent ) which was good news for mortgage holders . More negatively , inflation continues to spiral upwards overseas with some economies , most notably the United Kingdom , expected to go into recession as a result . Ideally , Australia will be able to dodge what ’ s happening overseas in the same way we did following the Global Financial Crisis . Right now , it looks like we will .
This month in Ray White Now , we provide a focus on investing in property . More particularly , we take a look at whether a down market is a good time to invest in property . We then provide a state by state look at each capital city to provide an overview of their outlook for investors . In our commercial piece , we look at who ’ s been buying and selling . While private investors have been net sellers of commercial property during the last two years , this may be reversed given changed conditions so far this financial year . Finally , we take a look at some of the reasons why it may be worth selling now , even though conditions are more subdued .
We hope hope you enjoy you reading enjoy this reading month ’ s Ray this White month
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Ray White Now . Nerida Conisbee Chief Economist Ray White Group
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