I’ll kick off this week by issuing myself an infringement notice. The RBA board didn’t meet as I had incorrectly predicted last week…they will next. A note to the skeptics; proof I do write this newsletter (*fires ghostwriter).
Now, it’s 2025, and people keep asking, “How is the market?” If I’m completely honest, it’s hard not to feel a little gaslit out there. On the one hand, many agents are telling people that the market is red hot. Yet, in the past two weeks, over 50% of the advertised listings have had their price guides ‘adjusted’. Hmmm, which one is it?
I’ve now seen enough to share what we are seeing in this market. I should clarify that I’m referring to the rule, not the exceptions. Yes, ‘A grade’ properties are attracting competitive interest (they always do), but it’s the other 90% that I’m reporting on.
The 2025 market has opened this year with more of a thud than a bang. It’s true that an interest rate cut will improve sentiment however the reality is that’s probably already baked in. We all know that rates are going to come down this year, but will a minor rate cut be a game changer? I’d say more of a relief than a rally.
The combination of higher living costs, interest rates and global uncertainty means it could be a while before we head back into a red hot market. This should be viewed as a signal for buyers that have sat on the sidelines for the past couple of years.
Speaking of games…to those of you that have been two-stepping in Mom jeans since the half time show of Monday’s Super Bowl, I see you. It was brutal…and I’m not talking about the game.
Until next week,
David Murphy