On my list of qualifications, I boast bush lawyer, bush accountant and bush economist. That Bush University spits out degrees!
As a bush economist, I did not see that last interest rate rise coming.
That also puts me in the same camp as 50 per cent of actually qualified economists. I’m now unsure what will happen on Tuesday, will they go up again? That would be 14 interest rate rises.
At our end-of-financial-year auction event at the Calile Hotel, following the last rate rise, we originally had 17 properties scheduled to go to auction, nine sold prior, with five more selling on the day, 14/17 sold.
Couple this with news that buyer’s agents have more “signed on” buyers than they can find properties for, and it’s a similar story with pre-approvals from mortgage brokers. This paints the picture of a market that’s moving. An increase in rates will only make it harder, but it won’t stop the interest.
If the rise or fall of the residential market is part of the decision, the supply versus demand dilemma could be portraying us in the wrong light.
It may seem like the rates are having no impact, but they are. They are creating financial hardship.
A wave of people were told, ‘If they buy, they could lock in at 2 per cent, and rates won’t move until 2024,’ and then they tripled! These increases are creating a sea of people with properties they can’t afford and no rentals to move to! But that’s just the opinion of a bushie.