Well, “The Weekly” this week goes from the macro to the micro – stick with us…
Rates up again…shouldn’t really surprise anyone.
Australia’s unemployment rate fell to a nearly 50-year low in June, leading to expectations of a bigger-than-usual rate rise in August. And maybe in September, October, and November too.
Inflation in Australia is now expected to top out at 7.75% in December. The rate to June was 6.1%. But it’s not all bad news…really!
To put that in context, US consumer prices have hit 9.1%, the biggest annual increase since 1981. The Fed just delivered a large 0.75% hike. Canada recently delivered a shock 1% rate hike, while New Zealand raised its cash rate by 0.5%.
The good news? Our inflation rate was slightly less than expected, and at a lower growth than the last set of figures.
There are thoughts that we might have seen ‘peak’ inflation, as supply chains recover post-Covid, and both industry and agriculture start to settle down a bit. Some events; the war in Ukraine and subsequent global supply chain issues – are simply global issues, but some, rising food prices due to flooding and intense rain here in Australia, are purely domestic and hopefully will settle down…
The truth is that interest rates are something of a blunt tool, but it’s all the RBA has. Raising rates here clearly has no effect on issues on the global supply chain, production in China, grain from the Ukraine, etc…but the idea is to get us to spend less and save more, and right the perceived imbalance.
If that is the case, maybe rates will top out earlier and lower than has been expected. Certainly ‘the markets’ seem slightly less panicked than before, and some forecasters are even thinking that the worst might be…not over, but lower than earlier predicted.
And that in turn might mean rates don’t rise as far and fast as predicted.
But for now, best assume, as the Treasurer is, that they don’t…
The latest info suggests that ‘the rain’ is now going to run through ’til November. Enough, surely! Where is it coming from? This also means we’re likely to see the return of potholes.
If you see them on main roads, you can report them on:
And if your car is damaged – tyres, hubcaps, bodywork – you can claim:
On minor roads, the repair and damage falls to council, as per these links:
With a softer property market, some buyers are now cooling off, expecting more declines.
Our advice? Buyers shouldn’t give up. “Buyer Markets” only work for buyers that buy!
Lower activity may well give you the opportunity to find, and think about, your perfect family home, without the frenzy of 2020/2021…but trying to pick the bottom of the market is fraught. Best to concentrate on finding the home you want for the long term…
As we always advise, buyers should also bear in mind the sensitivity of the vendor. They may be selling, but are often very emotionally involved, and low ball opportunistic offers simply risk getting the vendors offside to the point where they simply won’t engage at all.
We mentioned the recent forum regarding the need for protection of Pittwater from overdevelopment. Here’s a report on it.
In local news, The Avalon Plan has been adopted by Council; excluding the somewhat divisive issue of bike lanes. This has been up for comment and information for some time, but if you missed it all and would like to know what’s happening, here’s the link below.
Critically, there’s a greater pedestrianisation…and an effort to increase tree canopy, address parking etc.
I know; not everyone’s in favour, and we hope it doesn’t end up looking too ‘generic’. It would be lovely if it reflected the unique nature of ‘our place’…
The Avalon Cinema was PACKED to the gunnels last Friday for the ‘Gutsy Girls’ film festival, a series of inspiring short films about female adventurers. Not just for women, they were fascinating insights. Well done Avalon Cinema for keeping up with showing independent films!
You’ve missed it locally this year, altho’ it’s still showing around the country. But if interested, click the link to be kept in the loop:
Lately, we’ve heard Bilgola Plateau referred to as Little Briton…with so many British ex-pats settling there! So, here’s a bit of news for them – and any local Anglophiles: The site next to The Sneaky Grind, where Pizzico used to be…and opening on Thursday, is a British bistro/bar called The Yorkshire Rose. The local owners are passionate about food and drink – and their idea of ’proper’ beer on tap. Hard to imagine beer served at room temperature in Summer…and that ever being an attractive option….but the menu really does look good – especially if you like Sunday roasts, which are making a big come-back, not only in Avalon.
Have you noticed there’s barely a single shopfront vacant in Avalon, Bilgola and Newport?! The place is humming! We’ve got a few opens tomorrow too – that we hope will be buzzing! Scroll down for details: