REINSW: The Real Week Ahead
- Written by Tim McKibbin, CEO, Real Estate Institute of NSW
“The Reserve Bank meets tomorrow and though we expect no change to the official cash rate, we can expect the groundswell of concern about rising house prices to be intertwined with the broader interest rate discussion.
“It’s true that low rates supported the housing market turnaround last year but it’s misleading to suggest cheap finance is the main factor.
“Like any market, when the intensity of demand cannot be satisfied by low availability of supply, prices will continue to rise.
“Nevertheless, with CoreLogic figures released today showing a further 1.8% increase in national home values over the past month, those looking to enter the market or upgrade are justified in being concerned about affordability.
“The answer lies on the supply side of the equation as the continuation of the low rate environment is an important platform for the broader economic recovery we’re in the early stages of.
“The Real Estate Institute of NSW Roadshow tour continues in Batemans Bay and Wollongong this week. The events are valuable to attendees at this active time in the market, but also of great value to us to understand how broader trends are impacting specific localities.
“The stories we are hearing underline the need for reform, including the need for a regulatory authority which better understands the complexities of the industry that’s the state’s biggest economic contributor.”
To find out when the REINSW Roadshow is coming to you and for ticketing information visit: roadshow.reinsw.com.au
