Wednesday 18 Apr 2018
It’s amazing how you can take things a little bit for granted. Like when you wake up one day and suddenly realise your kids are all grown up and about to leave home. Where did the time go? I had one of those realisations this week when I read some fascinating facts about our economy. How did I not notice before?
I read an article in The Guardian this week that highlighted it has been a record breaking 91 months since the Reserve Bank of Australia last raised the cash rate. 91 months!! That’s a big chunk of time. There are kids now in primary school who weren’t born and doctors practicing medicine who hadn’t left school the last time interest rates went up.
On top of that the same article highlighted that it has been 21 months since the cash rate has moved, in any direction. Again, that is a big chunk of time for there to be no change at all. It is amazing how easy it is to lose track of time and to potentially take for granted the good times.
It would be very easy to assume consumers are complacent about the state of the economy, indeed the RBA Financial Stability Review released last week warns the ‘appetite for risk’ is growing which makes them nervous.
I get that, but interestingly I’m not seeing it. There is real caution and consideration out there amongst our clients. We continue to see strong demand for our increased listings coming online across all of our Sydney offices but there is certainly a degree of caution too, which I think is a good thing.
It bodes well for the long term underlying strength of the property market that good decisions are being made after taking into consideration the potential for changing economic conditions. It shows that buyers are proceeding to purchase and willing to present strong offers for property with an informed understanding that property values can be sustained in the long term.
That is sensible and exciting. Time does fly but the future still looks good for property.