There’s no beating around the bush: all eyes have been on the RBA today. With rates climbing to 4.1%, this second lift is a direct hit to borrowing capacity and will undoubtedly put some buyers back on their heels.
At CobdenHayson, we’ve been critical of the RBA for some time. In our view, they’ve been well behind the curve - misreading inflation data long before the Iran conflict sent fuel prices north. The writing was on the wall well before the latest global flare-up, yet here we are, navigating a market where the "path forward" is no longer a straight line.
The reality on the ground
As we head toward the Easter break, the dynamics have shifted:
- Selection over Speed: This isn't a "panic" market; it’s a disciplined one. Buyers have high stock levels to choose from and are taking their time. Decisions now sit on a knife’s edge.
- The Serviceability Ceiling: Rising rates don’t just dampen sentiment; they tighten the handbrake on what people can actually bid.
- Price Elasticity: Sellers need to be poised and ready to adjust. With major banks are already flagging a potential third hike in May, the market is pricing in future pain today.
The bottom line
Sales will continue, they always do, but the "easy" wins are behind us. The road to a result now involves more twists and turns, making the gap between a standard agent and an experienced one wider than ever.
In an environment where the path isn't clear, you need an agent who can read the play, manage the adjustments, and find the path to progress. That is where our team lives: in the detail and with clear guidance.
