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At its first meeting for 2024, the Reserve Bank of Australia (RBA) has decided to keep the cash rate on hold at 4.35 per cent.
Read today’s official statement on the RBA’s website. The next RBA cash rate decision will be announced on March 19.
The latest quarterly inflation figures released by the Australian Bureau of Statistics (ABS) showed the Consumer Price Index has eased to 4.1 per cent in the year to December, down from 5.4 per cent in the September quarter. In the December quarter alone, inflation slowed to 0.6 per cent, its lowest quarterly reading since March 2021.
Given the inflation figures, many economists were expecting the cash rate would remain on hold for the early part of 2024, followed by a cut potentially in August or September.
Meanwhile, a new survey by CoreLogic has revealed more than seven in ten (71%) real estate professionals expect interest rates to have the most significant impact on the housing market in 2024.
The 'Decoding 2024: Real estate's trends and goals revealed' survey looked at insight from 1,400-plus real estate professionals about what this year might look like in the property world.
In total, 71% of respondents said fluctuations in interest rates would be the primary driver of the Australian real estate market in 2024. Of those, nearly three in five (59%) strongly believed rising rates would have the most significant impact, while 12% anticipated falling rates would make waves to some degree.
"The broad expectation for housing values in 2024 is that the market will still grow but at a slower rate than the 8.1% observed in CoreLogic's Home Value Index in 2023," CoreLogic Head of Residential Research Australia Eliza Owen said.
If you’re looking to purchase your first or next property in 2024, or you’re considering refinancing, we can help.
Let us compare the market and find you a home loan that suits your specific needs and financial goals.
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Need help understanding what this announcement means for you? Contact us today.
Kien Phan
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