GOOD MORNING FROM ELITE AGENT

Knight's Choice winning the Melbourne Cup at 80-1 odds? If you backed that, congratulations, you clearly thrive on long shots. For everyone else, betting on the RBA holding rates was the safer punt of the day.

Today’s read time: 4 minutes, 25 seconds.

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FINANCE

RBA freezes rates as inflation stays stubbornly high

The Reserve Bank of Australia (RBA) has decided to hold the cash rate at 4.35%, marking the eighth consecutive meeting with no change, as inflation remains stubbornly above the target range.

While headline inflation has eased to 2.8%, core inflation sits higher at 3.5%, indicating the need for continued caution. Economists widely expected this decision, pointing to strong employment figures and persistent inflation as key factors.

For real estate agents, this continuation of high borrowing costs means steady but potentially cautious buyer interest as the year concludes and limited relief until 2025.

Inflation remains a concern

The RBA’s choice to hold rates despite headline inflation dropping to 2.8% reflects its concern over persistent underlying inflation. Saul Eslake, an independent economist, underscored this point, saying, “Underlying inflation numbers were not 'good' enough to justify cutting rates in either November or December.”

No rate cuts expected before 2025

Economist Geoffrey Kingston from Macquarie University indicated that the RBA is in no hurry to shift its policy stance, reinforcing the view that rate cuts are unlikely until at least February 2025.

“Higher for longer remains the watchword for the cash rate,” Mr Kingston said, highlighting that while the headline and core inflation rates have eased, other factors such as a resilient labour market and elevated public spending continue to exert pressure.

“With a federal election likely in the first half of next year, it’s hard to see a spending cut any time soon,” further complicating the potential for earlier rate cuts.”

Impact on the real estate market

For real estate agents, the continued pause in rate adjustments brings a mixed outlook. Elevated rates will likely keep borrowing costs high, impacting buyer affordability. However, home prices have shown resilience. 

“The third-quarter consumer price index (CPI) confirmed inflation is easing, but not enough to shift the RBA's policy stance,” said Eleanor Creagh, REA Group Senior Economist. Despite affordability constraints, the PropTrack Home Price Index reported that national home prices hit a new record in October, marking 22 consecutive months of growth, albeit at a slower pace.

Mathew Tiller, Head of Research at LJ Hooker Group, mentioned that steady rates could extend the spring selling season through to Christmas, with increased listings providing more options for buyers.

ICYMI, yesterday we discussed buyer timing traits

TOGETHER WITH HARCOURTS

New CEO appointment at Harcourts South Australia

Harcourts South Australia has appointed Heather Edwards as its new CEO. With extensive experience in real estate, including property management and business ownership, Ms Edwards has a proven track record. Formerly a Director at Harcourts Elite Adelaide and a mentor in senior franchise roles, she is well-equipped to lead Harcourts SA to continued growth. "Harcourts has always felt like 'home'. With local, on-the-ground support in South Australia, this allows me to focus on the growth of our people and network," she said.

Adrian Knowles, Harcourts Australia CEO, also backed her appointment. "We're delighted to welcome Heather back into blue.”

Read more about Harcourts here

SMART SNIPPETS

Changing buyer habits open new doors for agents
The REA Group's 2024 Property Seeker Survey reveals that buyers take 44 weeks on average to purchase a property, which is up from 34 weeks last year. Buyers prioritise features like bedroom count, garage space, and natural light, while first-home buyers and upsizers have distinct needs, such as public transport access and school zones. Agents are encouraged to tailor listings to these preferences and keep online profiles updated, as 50% of first-time sellers search for agents online.

Relief in sight for renters
Australia's rental market is showing the first signs of easing in months, with property availability up 5.4% nationwide in October. The national median weekly rent dropped for the first time since June, falling $10 to $610, while rental listings increased significantly in the Northern Territory and Victoria. Experts suggest this could mark the beginning of a more stable rental market.

Political tensions lead to neighbour disputes in the US
In the lead-up to the US elections, one in five Americans have experienced disagreements with neighbours. A survey found that political affiliations played a role, with 23.1% of Trump supporters and 19.5% of Harris voters engaging in disputes. Younger generations, especially Gen Z (26.4%) and millennials (23.5%), were most prone to conflicts and homeowners (20.5%) reported more disputes than renters (16.3%).

SOUND WAVES

When it’s too good to be true

Not all that shimmers is gold. Just ask George Laing, who bought a three-story house in Sicily for just €1. The deal came with a catch: a three-year deadline to renovate or face a €5,000 fine. This curated listen is a warning to your buyers: a "bargain" property can come with hidden headaches.

Dive straight into the listen below or the deeper dive here.

Read the article from Unilad here

AGENTS ON SOCIAL

Real estate agents on Melbourne Cup day: swapping property pitches for race tips, balancing champagne flutes with client calls, and hoping their luck at the track matches their weekend auction results.🏇🏻🏆

@searchpropertyau

Melbourne Fit Check 🐎🔍🏠 #fitcheck #outfitideas #fashiontiktok #melbournecup #realestatelife #buyersagency #searchpropertyau

Seen an Agent On Social we should include? Let us know here (email link)

Wishing you a productive day

Elite Agent is crewed by Mark Edwards, Catherine Nikas-Boulos, Rowan Crosby, Giverny Pringle, Charmagne Arrubio and Samantha McLean. We aim to uplift the real estate industry by delivering forward-thinking, hype-free news and education that fosters knowledge and fuels ambition.

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