ECONOMIC INDICATORS, INTEREST RATES AND REAL ESTATE TRENDS

August 21, 2023 Public Service Announcement.

The economy is displaying signs of a substantial slowdown, which might present some challenges in the coming months, but we remain hopeful to avoid a recession. Across various industries, businesses are reporting a notable change in consumer spending patterns. Recent research by Roy Morgans reveals that approximately 1.43 million Australians, equivalent to 28.7% of all mortgage holders in the country, are at risk of mortgage stress, making it no surprise that financial concerns are widespread.

On a relatively positive note, homeowners have managed to offset higher interest rates with modest gains in property values, meaning that the majority are affected more from a cash flow perspective rather than a reduction in net wealth. However, this hasn’t spared many from facing the challenge of paying their monthly bills, as the increased interest rates have drained their savings and put them in a negative cash position week after week. The big question that lingers is how long interest rates will remain at these elevated levels. The rising number of property owners seeking appraisals to sell due to financial stress is an indicator of the current situation. An influx of properties in the market might shift the balance between buyers and sellers, ultimately influencing property prices.

For More Info Go To – https://www.rwsp.net/news/economic-indicators-interest-rates-and-real-estate-trends

Thanks to Ray White