Interest Rate Forecasts Set To Drop In 2024

In This Week’s How's The Market | Edition 79

Interest Rate Forecasts Set To Drop In 2024
March 2nd Will Be An Important Auction Weekend For Melbourne
The Best Example Of Queen Anne Architecture In Melbourne

As we step into the new year, there's a growing anticipation that official interest rates may take a turn for the better as 2024 progresses.

The Reserve Bank's strategy to temper the economy and tackle inflation has often felt like a case of "short-term pain for long-term gain" with many Australians understanding the short-term pain too well right now.

Economists are increasingly shifting their focus towards the possibility of interest rate reductions by the Reserve Bank. This sentiment was heightened after the February board meeting as the RBA stated inflation was lower than their November predictions.

For those with mortgages or considering taking one out, this news comes as a breath of fresh air. According to some of the major bank's projections, not only is the Reserve Bank expected to initiate rate cuts in September, but they anticipate a total reduction of three-quarters of a percentage point before the year-end, with a further decrease of the same magnitude early in 2025.

Imagine the relief of having a more manageable home loan in just eighteen months' time!

Given this optimistic outlook, many Victorians may be contemplating their next move before the Reserve Bank's anticipated adjustments, seeking to capitalise on potentially less competitive market conditions.

If you're considering your options and would like to have a confidential discussion with one of our experienced team members at Tomii Buyer and Vendor Advocates, feel free to reach out to us at 0429 818 011 or book a call here. We're here to help you navigate through your choices and make informed decisions about your property journey.

What The Agents Are Saying

March 2nd will be a telling auction weekend for Melbourne.

Whilst auctions have kicked off again in February and are starting to ramp up, March 2nd is going to be a huge auction weekend that will provide a great thermostat for the state of the market.

Many agents have told me that properties they are selling on that weekend have a number of competing properties currently online.

One of the properties we are currently helping to sell via a vendor advocacy campaign has 7 highly comparable properties in the same suburb due for auction on that weekend alone.

Agents all around Melbourne have told me a similar sentiment that last year they couldn’t get listings, but now, they have listings and are hoping they will be able to sell them all.

The Wow Factor!

1 Harcourt Street, Hawthorn East, Vic 3123

A feast for the eyes.

One of the best examples of Queen Anne architecture in Melbourne.

Definitely a listing you will want to see.

Price Guide: $20m - $22m

In The Media

Sydney in danger of being city with ‘no grandkids’, NSW Productivity Commission warns

An interesting article that looks into the issues of being a city filled with expensive houses rather than a higher-density form of living like other cities around the world.

Final Thoughts

As news and forecasts of interest rates drops are already coming out, we are already sensing a sentiment shift from the clever buyers making a move early.

If you would like to discuss if buying or selling real estate now is the right move for you, feel free to reach out.

Thanks for reading this far!

We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au

Happy Buying!

Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.

Interest Rate Forecasts Set To Drop In 2024