The Reserve Bank's decision to increase the cash rate by 25 basis points to 4.85 per cent is disappointing for mortgage holders, but hardly unexpected given the latest inflation figures.
With annual inflation rising to 4.3 per cent in September and underlying inflation at 3.6 per cent, the RBA has made it clear that getting inflation under control remains its priority.
In Victoria, the property market is already in something of a holding pattern, with buyers and sellers facing several uncertainties, particularly the upcoming state election.
From conversations we're having across our network, there's a sense that many people are waiting for some of those unknowns to be resolved before making their next move.
The election is a significant factor in that hesitation. Regardless of which party forms government, having a result at the end of the month will remove one major uncertainty and give people greater clarity about the direction of the state.
That's not to suggest we'll see an immediate surge in activity after the election, but it should provide some much-needed confidence.
Victoria's new auction rules have also contributed to a period of adjustment.
Melbourne auction volumes fell to 495 on the first weekend following their introduction, before rebounding almost 68 per cent to 831 the following weekend.
While that recovery is encouraging, broader market conditions remain challenging.
Looking ahead, I don't anticipate any significant improvement in the next three to six months, particularly with further interest rate increases still a possibility.
For homeowners considering selling within the next 12 to 18 months, I'd encourage them to consider bringing that decision forward rather than waiting for better conditions.
There's no guarantee that delaying will deliver a stronger result, particularly if borrowing costs remain elevated.
Ultimately, property decisions should be driven by individual circumstances rather than trying to predict when the market might improve.
A tired kitchen. Worn carpet. Walls that have seen better days. When an investment property becomes vacant, it can be tempting to renovate everything at once.
Would you hand the keys to your brand-new car to someone you barely know without making sure it was insured? It's a question we often ask investors when discussing landlord insurance.
Before a prospective renter walks through the door, much of the work that determines a successful tenancy should already be underway.
You check your phone, hoping for an update. Another inspection has finished, and you’re waiting to hear whether someone has applied.
All of our agents have the experience and local knowledge to guide you
Whether selling or investing, an appraisal of value will give you the confidence to make an informed decision
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