Five RBA cash rate rises - but less than those of 2022 as inflation dropped to 5.4% in the September 2023 quarter NB: It should also be noted that the RBA will only hold eight - rather than 11 - cash rate meetings in 2024 (February, March, May, June, August, September, November and December)
Adjusting market CoreLogic's Home Value Index report this month noted the final quarter of 2023 resulted in Sydney and Melbourne's median dwelling values dropping by 0.8% and -0.2%; however Brisbane and Adelaide experienced 3.7% growth while Perth won the gold prize for the highest increase (5.1%).
CoreLogic’s research director, Tim Lawless liked the nation's monthly growth peak in home values of 1.3% in May. "(But) a rate hike in June and another in November, along with persistent cost of living pressures, worsening affordability challenges, rising advertised stock levels and low consumer sentiment, have progressively taken some heat out of the market through the second half of the year," he said.
Rising cost of living expenses and lower consumer confidence
Be aware that FOMO can fool you We're not saying fear of missing out should equal sitting on your hands or not buying the next house you see. But simply, be careful when buying, remembering that you're spending a major part of your life savings on a home. So, carefully and steadily is best.
Ensure you have a support network and not just a legal, financial and sales one. Unless you're a savvy investor or someone who has bought and sold many times, you will need even one person to empathise with you through the buying process. It's helpful if this person has bought or sold a home before but it's not crucial.
Assume interest rates will rise at least once - if not more - in 2024 but they're guaranteed to change less than in 2023, based simply on less RBA cash rate announcements. But in short, the RBA is determined to return inflation to its "target rate" of 2%-3%; thus the latest 5.4% CPI announcement is nowhere near where it should be. Thus, as the RBA repeated yet again in its December cash rate announcement, "the Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome."
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