Darn! They went the other way.
My tip was that the Reserve Bank would leave interest Rates alone on the 18th of February,
They decided to drop them 0.25% – the first move downwards in almost 5 years.
Now I had no ulterior motive to see rates stay as they were, but some of the stats around inflation said that a rate drop might give inflation a kick along, possibly throw some fuel on the fire.
As for the property market, you would be aware from my last article, it started 2025 with a bang! Buyers are showing confidence and securing well priced, well-presented homes quickly. One high profile Property Conveyancer on the Coast has announced they are not taking new clients as they are snowed under with property transactions. That tells you something. The interest rate drop will give those buyers who may have been on the sidelines, the confidence to jump into the market, however a large chunk of new stock came on the market over the last 3-4 weeks so I don’t see prices rising dramatically – demand and supply should remain even. To see the return of a red-hot market, with prices heading north quickly, you would need to see interest rates drop around 1% in the next 2-3 months. And with the Election looming fast, anything could happen. Don’t forget to tune into A Peek Inside at 2.30pm Thursdays with Lee Dixon and myself on 7ad and 7bu where we discuss all things property (and more).