Here we go

Okay, here we go. The much anticipated, much discussed, and much-dreaded interest rate rise has arrived and with it has come a deluge of statistics and analysis on the impact on individual households, the property market, and the economy in general. So, what do we do?

What do we do? Simple. We’ll do the same thing we did yesterday, and the day before that and the same thing we will do tomorrow.

Don’t get me wrong, I’m not underplaying the significance of the announcement. Of particular importance is the commentary from the Reserve Bank that they expect rates will continue to rise over the year ahead. It is a big deal.

And yes, it will have implications for the residential property market. The cost of money is getting more expensive so that will impact how much people have to spend at the same time other costs of living pressures are starting to dull demand somewhat.

There is no doubt it makes things harder, but it’s important to highlight that it does not change what we do. 

A key priority for our team is always talking the truth to our clients. That means providing guidance on demand and value that applies to different properties in different locations that appeal to different demographics. 

Sounds obvious doesn’t it but when you’re reading the analysis of rate rises on the market and the economy it is easy to forget that for every general observation there will be unique exceptions. Demand is often reported as a national, state or city calculation but it will also vary across districts and suburbs.

So, my advice is don’t despair that we are all doomed. There is always going to be demand for residential real estate. Seek honest, factual information and frank advice from experts who specialise in the precincts in which you want to buy or sell because that specific analysis is important.

Our team will do what we always do. They will provide clients with the information required to make informed choices, whether that be to list, buy, lease, or do nothing right now except to maintain the conversation with their Morton agent. 

And for those clients who choose to list with Morton, the aim is always the same regardless of interest rates, extreme weather events and even federal election campaigns. We’ll deliver the best value available. To slightly misquote former American President Barack Obama “That’s what we do”.

Posted in Ewan's Blog on 5th May, 2022