With the Spring Property market up and running and the nicer weather upon us is this the recipe for the revitalisation of the Melbourne Property market.
A clearance rate of 75% was achieved on the weekend proving whilst the market is quiet we are still seeing a good consistent clearance rate.
Scheduled Auctions
1455
Reported Auctions
777
Total Sold
586
Total Passed In
191
Clearance Rate
75%
What is driving some of this renewed vigour?
Well confidence in where we are heading, we have had a couple of years of both uncertainty and cost of living pressures but there may be a small flicker of light at the end of the tunnel.
Whilst the RBA hasn’t been talking about a rate cute the major banks have, this can have a positive impact on the market and consumer behaviour, but it’s not quite the same as an actual rate cut. The RBA’s current cash rate target is 4.35%, and while discussions about potential rate cuts can boost consumer and business confidence, it’s the actual rate cut that provides direct relief to consumers and businesses by reducing borrowing costs.
Market expectations have shifted rapidly in recent weeks, with some predicting rate cuts as early as November this year. The RBA’s primary goal is to control inflation while ensuring economic stability, and they’re striving for a “soft landing” – a gradual reduction in inflation that doesn’t compromise job growth.
However, RBA governor Michele Bullock has also hinted that a rate cut this year is unlikely.
- Key differences between talk and action:
- Confidence boost: Talk of rate cuts can increase consumer and business confidence, leading to increased spending and investment.
- Actual relief: An actual rate cut provides direct relief to consumers and businesses by reducing borrowing costs.
- Market impact: An actual rate cut can lead to increased economic activity, employment, and inflation stability.
In summary, while talk of an interest rate cut can have some benefits, it’s the actual rate cut that delivers tangible benefits to consumers and businesses.
