RBA OUTCOME & THE CURRENT MARKET! - 10/08/26

After today’s RBA Meeting, the cash rate much like the current property market has come to a screeching halt at 4.35%, after having had 3 rate hikes this year already.

4.25 percentage points in 18 months, from 0.10% in May 2022 to 4.35% in November 2023, across 13 separate increases. That’s the fastest hiking cycle since the 1990s.

This combined with the new regulations regarding capital gains tax, negative gearing & self managed super funds, has made quite a large exodus for investors from the current property market, which has hit Melbourne & Sydney the hardest. Queensland’s prices may have fared better but the market here still has slowed down dramatically over the last couple of weeks.

Queensland has the second largest amount of real estate agents in the country well in excess of 12,000 agents currently, with tighter regulations in the past 12 months in regards to real estate agents now requiring CPD & AML Training.

Plus there is new legislation with contracts and the fact that disclosure statements are now mandatory on all properties, it is predicted within the next 6-12 months there will be a large amount of agents exiting the industry especially newbie agents as they struggle to compete with more experienced agents that have been through these cycles before...

If you have investment properties and don't intend to sell in the near future, then you might be pleased to hear that the Gold Coast's rental vacancy rate is currently extremely tight hovering around 1 per cent. Potentially we may see rent spikes of up to 18.7% in the coming year.

However if you do need to sell, now more than ever is the time you need an agent that has the following qualities:

1) Experience in a falling market.

2) Outstanding past performance.

3) Is up to date with all new legislation, disclosures and contracts.

Remember that nothing is permanent, more than likely this is just a market correction, but no one knows for certain as interest rates have been forecast to rise before the end of the year.

There is still no better long term investment than property that's why they always say "Nothing beats bricks & Mortar".

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