Bi Monthly Market Update | Sale and Rental markets are in short supply!

Sale and Rental markets are in short supply!

• The IMF are forecasting GDP growth next year of 6-7% for Australia after a fall of 6% in 2020. Optimistically, I am focussed on the recovery.

• Between the US oil market troubles (storage capacity shortages/costs leading to holders of futures contract being forced to sell), Virgin being put into administration and the RBA announcing they expected output to drop by 10%, our market struggled yesterday losing 2.5% for the second day in a row with the S&P ASX-200 closing at 5,221.3.

• After a roller coaster start to the year, the ASX-200 is now down 21.8% year to date. The Aussie dollar is at US 62.84 c.

• COVID-19 restrictions could begin to be lessened towards the middle of the year leading to an economic bounce back in the September quarter.

• Good news with the ANZ Consumer Confidence Survey showing consumer confidence has climbed for the third straight week. It’s now 30% above the historic low of the last weekend of March.

• More good news for WA in that iron ore prices have remained resilient with China showing a continued pick up in steel production.

• REIWA figures show there are 5% less properties listed for sale than 4 weeks ago which is 28% lower than levels seen a year ago. The rental market is similarly tight. Limited supply is good support for prices.

• Buyers are complaining to me about a lack of choice.

• Call me to see where your home fits in today’s market.

Authored by Jody Fewster

Please call 0414 688 988 if I can provide you with a current market appraisal and detailed marketing plan for your home or investment property.