The choice to maintain the cash rate at 4.35% was widely anticipated, especially considering the lower-than-expected inflation data for the last quarter of 2023, which fell approximately 45 basis points below the RBA’s projections.
The RBA’s downward revision of their inflation forecast, as outlined in the Statement on Monetary Policy accompanying the board’s decision, suggests a strong possibility of a rate cut later in the year. Reduced rates, coupled with decreasing cost of living burdens and tax cuts, are poised to enhance borrowing capacity, providing a significant stimulus.
Despite a slight dip in the auction clearance rate compared to last year, currently sitting at 60% across NSW, foot traffic through open homes remains strong. At Mavis, we’ve maintained a healthy average of 4 registered bidders at each auction, achieving an impressive auction clearance rate of 98%.
We’ve continued to see no set appetite for buyers throughout Newcastle as renovated homes, homes to be renovated, and everything in between continue to be sought after. Location and lifestyle are the main considerations for buyers, guiding their purchasing decisions.
Furthermore, we’ve noticed a trend amongst the most viewed properties being those with multiple living spaces, ranging from small homes and apartments to large family homes. This trend highlights a shift among buyers, placing a premium on liveable functionality over sheer property size. Homes with expansive living and entertaining are in high demand for the practicality they offer.
With schools back, holidays over, and normality setting back in, we are looking forward to getting stuck into 2024!