Real Estate FROM COAST TO COUNTRY
R B A l i k e ly t o w a i t a n d s e e o n r a t e s
AN AUGUST rate rise is looking less likely according to finance analysts, with the Reserve Bank governor saying property prices had softened more than they expected since the war in the Middle East began. That’s good news for local home owners and anyone looking at financing to buy. Governor Michele Bullock addressed the Anika Foundation Fundraising Lunch in Sydney on Tuesday, July 28, on the topic Monetary Policy in an Era of Shocks. “A defining and recurring feature of the global economy in recent years has been the increasing frequency and impact of supply shocks,” Ms Bullock said. “The conflict in the Middle East is disrupting energy markets, severe weather events have affected production and trade around the world, and continuing trade tensions add further ambiguity,” she said. “The outlook can change quickly, and uncertainty can re-emerge even as earlier risks begin to ease.” She said inflation had been a world-wide challenge since the pandemic and that while Australia had fared relatively well reigning it in, it was still higher than she wanted and that the outlook was still
Open Homes Saturday, August 1 Raine & Horne Jet
• 837 Nobbys Creek Road, Nobbys Creek, 9.30–10am
• 63 Tyalgum Road, Byangum, 9.30–10am • 149 River Street, South Murwillumbah,
10.30–11am • 88 Rous River Way, Murwillumbah, 11–11.30am • 3 Panorama View, Kunghur, 11.30–2pm • 20 Panorama View, Kunghur, 11.30–2pm • 2981 Kyogle Road, Kunghur, 11.30–2pm • 7/1 Castle Field Drive, Murwillumbah, 12–12.30pm
uncertain. “Ongoing commodity price volatility seems likely, which makes it even more difficult to assess the ultimate effect on inflation and activity,” the governor said. “Likewise, because monetary policy operates with a lag, the full effects of this year’s cash rate increases are yet to be felt.” Ms Bullock said “new dwelling inflation picked up noticeably in the May CPI data, partly reflecting higher fuel and construction costs.” “One sector of the economy that has been weaker than expected is the housing market,” she said. “We had expected conditions to ease in response to the changed outlook for monetary policy and the rise in the cash rate earlier this year. “But the housing market has eased by more than we had anticipated in May. “This appears to reflect a range of factors, including recent policy developments affecting the housing market, and a general softening in housing market sentiment. “Price declines have been concentrated in the Sydney and Melbourne markets, but prices in these markets remain around where they were before interest rates started to rise in February this year.” The Home Price Index shows the median price of a home in Australia
in June was only $6,000 higher than in February, with annual growth having dropped from 9.1 per cent to 5.8 per cent. Ms Bullock said that despite the challenges, the RBA is confident households will be able to navigate the current volatility and that while consumer sentiment might be down, consumer spending was still up.
Tate Brownlee
• 37 The Hermitage, Tweed Heads South,
• 1055/20-22 Stuart Street, Tweed Heads, 9–9.30am
• 2074/20 Stuart Street, Tweed Heads, 9–9.30am • 2/6 Eastlakes Drive, Tweed Heads South, 9–9.30am
• 4 Hibiscus Parade, Banora Point, 9–9.30am • 34/74 Greenway Drive, Tweed Heads, 10–10.30am
• 17/74 Greenway Drive, Tweed Heads, 10–10.30am • 2 Azalea Court, Banora Point, 11–11.30am • 158/2 Falcon Way, Tweed Heads South, 11–11.30am • 33 Liriope St, Casuarina, 11– 11.30am • 38 Curtawilla Street, Banora Point, 11–11.30am
To us it’s More than property, it’s home! Shop 2 /41-45 Murwillumbah Street, Murwillumbah Phone: (02) 6672 2499
NEGATIVE EQUITY RARE Recent data indicate that despite falling housing prices, negative equity remains rare, affecting fewer than 1 per cent of borrowers, with only a small proportion experiencing severe repayment difficulties. “This is not to downplay that this would be stressful for those affected,” she said. “But it does indicate that financial stability risks are contained, and borrowers, in aggregate, have built up considerable savings buffers over recent years.” The RBA expects housing prices to fall when interest rates rise, but Ms Bullock reiterated that monetary policy does not aim to control house prices. “Rather, what matters for monetary policy is how changes in housing prices affect household spending, investment decisions and inflation,” 12–12.30pm • 22 Australia Drive, Terranora, 12–12.30pm • 16 Bosun Boulevard, Banora Point, 12–12.30pm • 14 Valleyview, Terranora, 1–1.30pm • 43 Henry Lawson Drive, Terranora, 1–1.30pm • 4 Minerva Court, Banora Point, 2–2.30pm • 17 Townsend Cres, Terranora, 2–2.30pm • 5/8 Marian Street, Tweed Heads, 2–2.30pm
DJ Stringer
• 9/198 Kennedy Dr, Tweed Heads West, 9–9.30am
• 4/29 Teemangum St, Tugun, 9–9.30am • 6/2 Surf St, Bilinga, 10–10.30am • 6/2 Ducat St, Tweed Heads, 10–10.30am • 25/22 Binya Ave, Tweed Heads, 10–10.30am
she said. As the RBA prepares to announce its next interest rate decision on August 11, she said forecasting remains difficult, with the labour market weakening more than expected in recent months. She said the unemployment rate increase was “somewhat more” than the RBA had predicted. “Five months have passed since the conflict began and while there are now some signs of the impact on inflation activity, conditions can change quickly,” she said. “The key question in the period ahead is whether the tightening in monetary policy earlier in the year is sufficient.” WHAT THE BIG 4 SAY There were rate rises in February and March to 4.35 per cent. Westpac is the only one of the big four banks expecting a rate hike, with Commonwealth Bank, National Australia Bank and ANZ expecting the bank to hold as it assesses the effects of earlier rate rises. The Australian Securities Exchange shows markets had been pricing in a 43 per cent chance of a cash rate increase on July 24, with that number dropping to 28 per cent on July 27. • 28/6-8 Thomson St, Tweed Heads, 11–11.30am • 54 The Quarterdeck, Tweed Heads, 11–11.30am • 6/241 Golden Four Dr, Bilinga, 11–11.30am • 5/18 Dutton St, Coolangatta, 11.45–12.15pm • 29 Townsend Cres, Terranora, 12–12.30pm
RBR Property Consultants
• 3/3 Johnston St, Bilinga, 9.30–10am • 1/77 McLean St, Coolangatta, 10.30–11am • 3/36 Soorley St, Tweed Heads South, 11.30–12pm
• 2/24 Hill St, Tweed Heads, 10.30–11am • 122 Broadwater Espl, Bilambil Height, 12.30–1pm
• 2 Dundee Dr, Banora point, 12.30–1pm • 41 Scenic Dr, Bilambil Height,1.30–2pm • 501/19 Winston St, Coolangatta,12–12.30pm
96443 Raine & Horne JET 10x6col
By Jo Kennett