Of course one of the key elements of this question will come down to interest rates, so it’s reassuring that the news on official interest rates looks likely to grow more positive the further into 2024 we go.

As we all know, the Reserve Bank’s strategy in slowing the economy to bring inflation under control has been a “short-term pain for long-term gain” approach, and I think it’s fair to say that most homeowners are pretty familiar with the ‘pain’ side of that equation!

However, in recent times we have noticed a growing number of economic commentators starting to talk more about the prospect of falls in official interest rates. The latest forecast from Australia’s largest home lender has added to this trend.

In case you missed the coverage during the Christmas/New Year period, the Commonwealth Banks’ Chief Economist, Stephen Halmarick, announced that they are expecting interest rates to begin falling in the second half of 2024. That’s welcome news for anyone with a mortgage, (or planning on taking one out in the near future).

What is even more reassuring is that the good news doesn’t stop there. The Commonwealth’s latest forecasts is that not only does it expect the RBA to start cutting interest rates in September, but they are anticipating three-quarters of a percentage point in rate cuts before Christmas, and a further three-quarters of a percentage point in reductions in the first half of 2025.

A drop of that nature would certainly put a smile on a lot of faces, wouldn’t it!

Of course, many Victorians will be looking at this outlook and thinking about making their next move before the Reserve Bank makes theirs in order to take advantage of less competitive market conditions. So if you’d like a quiet chat with one of the team at Barry Plant Thomastown you can feel free to give us a call this week on 9466 3233.

Regards,

Con Constantinou

Barry Plant Thomastown