RBA Cash Rate October 2020: An Economy on The Mend?

In this October RBA and economic update which we shared to our Empower Wealth and The Property Coach Communities, my theme mainly is going to be about an improving economic story and also the other big news around an improving housing story. So let’s get straight into it. The RBA Governor and the Board met today and they kept the Cash Rate on hold, 0.25%.

Now there has been a lot of talk about a potential move when it comes to that cash rate, so we’ll talk about that in a moment.

Let’s turn our attention to a strange occurrence. Today, it’s unusual that I’m talking about a Federal Budget, which is going to be delivered tonight. Obviously, we normally have a budget delivered in the first half of the year but obviously in these unprecedented times, we’re seeing the budget being delivered on the 6th of October.

That’s one of the big things. Now the big takeaway which will be confirmed tonight by the treasurer, Josh Frydenberg is most likely we will see tax cuts, personal tax cuts which will be backdated to the first of July of this year. We’re going to see personal tax cuts coming through. We might even see some tax cuts for small and medium size enterprise. We are forecasting that there will be infrastructure spending and they will be the big pieces of the economic story tonight because it all jobs, jobs, jobs. So you’ll hear that coming through from the Federal Government over the coming weeks and months as they try and get the economy back on track because of this pandemic and health crisis.

Lots to get through this and we’ll start with that in terms firstly, the health crisis. We can see through the opening of a lot of economies and movement and mobility of people in a lot of countries that we are starting to see some increased cases of the virus and the infection rates increasing in areas like Germany, Israel, Italy, Poland, Malaysia, Moscow and obviously we’re hearing that coming out of the UK as well. We’re definitely hearing about flareups in areas like London, New York and overall Brazil and India are also obviously got some very large challenges around their population sizes and controlling this very, very dangerous virus and highly contagious virus.

On the other side of the virus is the vaccine story. We have obviously several drugs in Stage II and Stage III trials. It was reported by Pfizer the end of last week that they will be reporting at the end of October on their efficacy of their vaccine and also most importantly, whether they did see it working. They are going to see some reports coming up. We’ll see more of this coming out in terms of all of these different vaccines that are under trial in terms of how they are progressing. That is exciting news as we come to the close of 2020 and in terms of what’s going to happen there. What’s also more importantly about that is what is the rollout going to be as we wait and see whether these drugs are going to work and we will have a viable vaccine or multiple vaccines to quell the coronavirus as we know it.

In terms of the world economy, again on a little bit of a positive news, the OECD have adjusted their global economic forecast.

They did expect the economy, the global economy would shrink as much as 6%. They’ve now revised that down to only a 4.5% contraction this year and their revisions have come through changes in the US and the Euro area in terms of a better forecast for those particular markets, as well as China, which is now forecasting moderate growth in those markets.

By way of example, the US is expected to contract by 3.8% versus a 7.3% that they early forecast. Now like any of these things, there will be spikes in cases and that could affect obviously how bumpy our recovery is going to be but it’s certainly going to be bumpy until such time as we have a vaccine in place and we got on top of the health crisis that we’ve got.

Turning our attentions to the US…

Obviously, the biggest news coming out of the US probably this year is Donald Trump contracting and testing positive to the coronavirus.

We obviously are seeing reports coming out that he is on the recovery pathway, so that is obviously positive news for him and also for the plans for the election and also what’s going to happen for the economy as well. That is hopefully a positive news story on the back of him testing positive to the coronavirus.

In terms of what we’re seeing around interest rates, we saw Jerome Powell coming out this month really talking about keeping the current interest rates unchanged at near zero levels and also a really clear indication and signalling to the market that we’re going to be keeping those rates there for at least three years as they focus on a very strong recovering economy. They are not going to move that cash rate any time soon until they see a very, very firing economy on all cylinders. So that is something to take note of.

That obviously is all about signalling to business to keep that economy moving and getting those jobs up and running inside. There will be no changes there and even if inflation does lift higher, that may not necessarily be a trigger for them to move the cash rate any time soon. On the jobs shrunk, the number of Americans who applied for jobs benefits fell slightly to 837,000 for the week ending September 26th. This is the lowest level since the start of the pandemic. Now interestingly, the data compromised because California, which is obviously a very large economic state in the US but globally is also a significant economy when you put in all those tech stocks into that particular state. They are not accepting any new applications until early October, until this month because what they’ve had is large processing backlogs and also they’re investigating reports of widespread fraud. The numbers aren’t necessarily super reliable when it comes to those jobless benefits figures.

When we talk about the property market over in the US, it’s quite fascinating. The numbers are strong in every areas that we look at it. In terms of pending home sales, index surged 8.8% in August to a record high of 132.8 after a strong gain of 5.9% in July. A year ago, pending home sales rose 20.5%. Now that is challenging considering or interesting considering that the unemployment is elevated. Low interest rates are certainly spurring on demand for housing especially in low density areas as people try and spread out a little bit more. Constructing spending jumped 1.4% in August following an upward revised gain of 0.7 in July. The Top 20 cities has price indexed published by CoreLogic in the US showed a gain of 0.55 in July, which beat market consensus expectations, as was an improvement on the flat outcome in June. This index is now at record highs. The annual rate lifted to 3.95 in the month and then we turn our attention to new homes. Continue to surge, gauge so that had record numbers in terms of surging gains to bridge the $1 million mark of home sales. Now, that is a level that has not been seen since late 2006. That’s positive. Then we turn our attention to sales of existing homes, rose by 2.4% to an annualised rate of 6 million units sales were 10.5% high compared to a year ago, which is the fastest annual pace since December of 2006. There is a lot going in regards to the US housing market. Finally, the housing market index rose to 83 in September from 78 in August according in a HB Report. The index is widely watched as a sentiment gauge for the outlook of US Housing Sector. The September results are the highest since the data series began back in 1985. So fascinating to watch what’s happening in the US Housing Market.

Overall the economy, the Federal Reserve’s Beige Book report of the US economy expanded in August but many parts of the economy experienced slower growth, lingering anxieties over the pandemic.

The Beige Book also reported a continued uncertainty and volatility related to the pandemic and its negative impact and effects on consumer business activity echoes things around the whole economy. Let’s talk about the budget deficit. It’s going to more than triple to a record $3.3 trillion this fiscal year and national debt will exceed 100% in the economy next year for the first time since World War II and this is a frightening number.

The US government debt will increase to $33.5 trillion by the end of the 3030 or 109% of GDP. Ouch! They need to do something about spending.

In terms of China, their economy continues to recover on the job front. The jobless rate in China fell to 5.6% in August compared to 5.7% in July. Unemployment peaked at 6.2% in February having been at 5.1% in November of last year so their economy continues to improve and the unemployment rate continues to fall. In terms of the property story, the annual pace of growth in the property investment picked up from a 3.5 in July to a 4.6 in August meanwhile fixed asset investments remain soft year on year pace of -3.

The overall improvement on a -1.6 pace in July. House prices rose at a fast pace in August having to signal recovery in China’s property market. Home prices rose by .56 in August following a rise of .47 in July. Annual growth eased slightly to 4.72 in August. The overall economy, we’re just seeing all of the indexes point to the official purchasing manages index of the compromise, which is the manufacturing and service index, showed improvement in September. The PMI rose .6 of 1% to a 55.1. The manufacturing just rose half a point to 55.5 and the services PMI rose .7 points to 55.9. All three indicators were above the 50%, suggesting an expansion in activity in the months ahead in these sectors and also underlies the strong economic recovery that is underway in China. Good news story there for the Chinese economy.

In terms of the Eurozone, the other big economic sector, the unemployment rate in the Eurozone lifted from a revised 8.0 in August to 8.1 in September. This is the 5th consecutive monthly rise, further rises are likely as wage support programs expire and increasing infections and many countries raises fear of some restrictions on business interactions that maybe imposed. That’s just something to follow there. The GDP numbers, GDP in Europe fell to 21.1% for the June quarter to be down 15% overall for the year. Unemployment slipped 2.8 for the quarter, having fallen .2 in the March quarter. Lots of challenges there in the Eurozone as they also managed the virus.

Let’s turn to Australia. And again, it is all about an improving economic outlook and sentiment as part of that story.

The big news probably for the month from the RBA came amidst September. The Reserve Governor, Deputy Governor Guy Debelle delivered a speech titled “The Australian Economy and Monetary Policy”.

He outlined the economic recovery was a slow grind and that we do face a gradual and uneven recovery. That is true. He also noted that the RBA was very open and prepared to do some more stimulus if required. Now during his speech, he talks about what those options were. The main preferred options appeared to have involved a further cash rate cut. Moving the cash rate down from .25 down to .1% and also cutting the targeted three year government bond yield by 15 basis points to bring that also down around to .1%, which is a further attempt to support lending because that is obviously what is going to stimulate business investment and get the economy moving.

Now given that there was no change in the cash rate this month on the back of the Federal budget being delivered tonight, the attention is definitely turning to the speech by Governor Lowe this month in terms of what the economists will do as a read on further action from the RBA and whether that will come as soon the November board meeting.

In regards to GDP – no surprises there – the results that came through the Australian economy contracted by 7% over the June quarter, which took us into recession. It was obviously the largest recorded on history, results and records back to 1959 and yes again, we are in recession. That has been confirmed. Now given the lift of COVID cases in New South Wales and Victoria over the September quarter, so we are starting to see Victoria get on top of its second wave down here, that we are starting to see potentially the September quarter could be challenged with a negative number.

We’re now probably turning our attentions to a December quarter positive number to end that recessionary period.

The recovery pathway continues to remain uncertain and uneven but given the way in which New South Sales, Queensland and other states and territories had been able to manage it and the fact that Victoria are on top of this current outbreak gives us some confidence in regards to that. Then we look at the six month annualised growth rate in the Westpac Melbourne Institute leading index, which indicates that a likely place of economic activity relative to trend three and nine months into the future rose from a -4.42 in July to a -2.56 in August, which continues to point to an improved recovery in the economy. I suspect we really do want to look at those numbers coming through September and October once the Victorian economy moves out of its restrictions.

Again, the other big theme of the improving economy is jobs, jobs, jobs.

Let’s look at the unemployment rate. It was quite surprising that there was a bumper employment story for August where we did see employment surge by 110,000 in August. The third largest monthly increase on record trailing only increase as seen in June and July. The outcome far exceeded most expectations from economists. That was a really surprising story given that obviously Victoria was in lockdown during those results. The unemployment rate declined as more Australians found work so there was 0.7% decline and the unemployment rate now currently sits at 6.8%. Nonetheless, employment still remains 421,000 or 3.2% below its February levels, so more needs to be done there. Again, in terms of what that also means, we wanted to focus in on hours worked. It only rose by .1 of 1% across Australia for the month of August and remains 4.6% below the hours worked that we saw in February when the economy was at its peak.

The participation rate also edged higher as more people came off benefits and they need to start looking for work. It moved to 64.8 from a 64.7 in July. Now the participation rate back in February was at 65.9. So still some work to do when it comes to that. Unemployment rate, the underemployment rate remains steady at 11.2% in August but is down from its peak of 13.8 in April and again remembering in February the underemployment rate stood at 8.8%. Lots to do there.

On the job ad front…so job vacancies rebounded by a record 46.7% in the three months to August following a drop 49.3% in the previous three months. The construction industry led the fastest … led the recovery at the fastest level with job vacancies expanding by nearly 92% in that month. Obviously the stimulus that’s coming still in the construction sector by the government is doing very well. ANZ job ads rose 1.6% in August following a 19.1% rise in July so we’ll turn our attention to the job ads data that’s coming through this month as well.

It’s really important to understand where we see it. In terms in August 2020, there were 109,000.1 jobs added compared to 155,000 jobs in August of 2019. Definitely off our lows which were April where we only saw 63,500 jobs ads at that time, so starting to improve. The Aussie dollar, we did see it had a fairly good run through August but in September, we saw it drifted downwards against the US as more cases of the COVID virus spread out. It was definitely a safe haven flows flowing to the US dollar which put pressure on the Australian Dollar against the US and so that’s why we’ve seen the Australian Dollar come down towards that 70 cents mark.

Most economists and banks are forecasting the Australian Dollar will move higher against the greenback in the coming weeks as the world digests the economic activity and the impact of the election that’s coming up and who will win that election.

Now our long term Australian Dollar versus the US Dollar is around 76 cents. We potentially see more of that happening. Unless we see that intervention by the Reserve Governor or in the board there in terms of bringing that dollar back down through monetary policy stimulus.

In terms of consumer confidence and this is coming back to an improving economy story, the weekly Roy Morgan Survey of Consumer Confidence showed another improvement in the latest weeks data ending September 27. The index lifted 1.5% to 95. It’s the fourth consecutive week of improvement, remembering that 100% is balance. Anything above 100 as a score is an optimistic as opposed to a pessimistic view of the economic situation. There’s more pessimists than optimists out there but that also is improving. The other big indicator here is the Westpac Melbourne Institution Consumer Sentiment Index also rebounded in September, given that the cases of the COVID virus were falling in Victoria and New South Wales. The index lifted from 79.5 in August to 93.9 in September and it’s the highest since the COVID-19 was declared a pandemic by the World Health Organization back in March. Looking at sentiment across all states rebounded, it was led by a 22.3% gain in New South Wales and also in Victoria lifted 14.9%. Now their reading is currently seeing at 89.6, which is the lowest of all states and to put that into context of the highest of all states, is Western Australia where their index lifted 18.6% to an optimistic reading of 101.9. That’s where we all want to head to get back into that positive territory.

Now looking at retail spending. Now retail is an important aspect of our economy. It employs in 1 in 10 people. It represents 10%. That’s right, 10% of the Aussie workforce. So it’s important that we get strong rebound in retail spending. We have had obviously a very strong retail spending story since May but we did see the August numbers taper off. It took a backwards step as retail spending fell 4.2% in August. Again, that was probably when we were a little bit less optimistic. We did see peoples closing their wallets and purses as we were trying to grapple with closing borders and movement of viruses between New South Wales and Victoria. That was a disappointing number. Let’s see what happens as we look towards the September and October numbers as we get more mobility and we open up our economy a little bit more especially down here in Victoria.

In terms of business confidence and conditions… after three consecutive months of improvements, the business conditions did deteriorate in August. Again, we’re looking at this lag data to a -6 so there was a resurgence in cases again in Victoria. Did dampen the enthusiasm of business confidence. That said, there was some encouraging news in the confidence improvement from a -14 in July to a -8 in August although confidence remains well below the long-term average. It does suggest business has remained cautious about the outlook to get the road to recovery and came to get a read on those September and October numbers as we come out of those restrictions.

On the manufacturing front, the AIG Performance and Manufacturing Index fell in September to 46.3% from 49.3 in August. This is the lowest reading since May and it’s below 50, suggesting there is still some contraction that is happening in the manufacturing sector for the periods up ahead but we have seen prior to the budget, we’ll get more information in regards that the Federal Government announced a $1.5 billion package to assist manufacturing sector as they turn their attention to producing more materials in Australia as opposed to importing materials and obviously that will result in more jobs for the Australian people. That said, we’ve got some challenges when it comes to the business side. The consumer side is also hopefully getting a little bit more confidence around that sentiment piece.

When we turn our attention to the property market, it is definitely a different story.

It isn’t one of that a property sector is going to lead us out of this economic slowdown and into a recovery. Well, let’s have a look at some of the stories that are going on here. In terms of housing and finance, we did see new lending rise across in July and the market continued to recover from the worst of the COVID-19 downturns. Total new lending, excluding refinances rose by 8.9 following a revised 6.4% increase in June. Owner occupied lending led the charge in July rising 10.7% off the back of a 5.8% increase in June. In this, the lending was positive with a 3.5% increase in July after an 8.3 lift seen in June. Now prior to that increase, we did see investor lending was falling for the previous five months. That says to us – and again, we’re still looking at lag data; I suspect those numbers will be better for August but because Victoria’s property market was effectively shut down in September, we might see some ordinary numbers coming through there but again, that’s not because of the lack of demand or interest in this particular sector.

Construction – there was a slight pullback in building approvals in August following a surge in July. Approvals were down 1.6% following a 12.2% rise in July. Over the year to August, approvals were up .6 of 1%. The trend in the data is now evidence that housing approvals have differently led the charge. They rose 4.8% in the back of an 8.6% lift in July but apartment approvals continue to slump and in negative territory. On a state by state basis, we did see massive variations too. In terms of Tassie, -26.2. New South Wales, -14.2 where a sharp declines approvals also fell in South Australia of 4.9. On the other end of the scale, Western Australia reported 33.8% increase in approvals as did Queensland was also 8.1% and surprise for Victoria also rose 1.8% even though it’s been locked down.

So let’s turn our attention to property prices and what’s been happening in the property market. It’s very clear that the bearish outlook that was anticipated in terms of major corrections in the property market have not materialised. We did see CoreLogic‘s results come through for September showing that dwelling prices fell only by .2 across the eight capital cities in September but importantly rose in every capital city except for Melbourne and Sydney.

Now the reason for the negative price falls across the market is that New South Wales and Victoria represents 40% of the overall property stock and it also represents 55% of its value. That’s why you put it into context. Let’s go through those numbers.

We did Sydney for the month -0.3 which for the quarter is -1.6. The annualised gain still sits at 7.7. Melbourne, -0.9 for the month, -3.3% for the quarter but still positive at 3.1% annualized.

Brisbane had positive of .5 of 1%. For the quarter it was flat. Annualised, 3.8% growth. Adelaide had growth of .8 of 1%, for the quarter .9 and annualized 3.6% growth rate. Perth, .2% growth for the month, -0.3 of 1% for the quarter and -1% for the annualised year but improving however 0.4 growth for the month, 0.3 growth for the quarter and 6.4% annualised. Darwin is strongest for the month with a 1.6% increase in property prices, for the quarter 2.3% and annualized 1.9%. Canberra up .4 growth for the month, 1.5 for the quarter and growth overall of 6.3%. Combined capital cities as I mentioned earlier, down -2, in terms of the quarter down -1.5, annualized up for 4.9%. Combined regions and the regions appear to be growing quicker on the month a .4% increase, up .5 for the quarter and 4.3% for the annualised year.

That meant that nationally, we only saw a -0.1 fall for the month – for the quarter -1.1 – and annualised still sitting 4.8% growth. That just goes to show you what’s happening out there.

Now obviously, the market is being insulated on a couple of areas. One is that most of the buyers and most of the sellers have decided to sit on the fence and not do anything over this period and watch to see what happens to the marketplace. It’s pretty clear to me that those people, those buyers who have taken action or going to be taking action in the short to medium term are probably going to see a lot more upside in terms of the return they’re going to get. If you’re a buyer and considering to looking at the market, it’s now time to start doing that research if you haven’t already bought yet as we see the marketplace is starting to open up a bit more as we get on top of the virus spread.

In terms of, as I mentioned before, the regional dwelling prices have been quite strong and that’s also potentially a product of behaviour around potentially looking at getting out of the largest cities or relocating to better opportunities as both obviously Melbourne and Sydney have the greatest risk of the spread because of its populous. That’s interesting.

Now I want to talk a bit about the property outlook. It’s not very often you see that the stars continue to align like the heavens. I just want to highlight, not take a deep dive in here now. We’ll probably take a deeper dive into this content in the upcoming podcast this week when we review the budget in more detail after it’s announced but also…

What are the indicators that are pointing towards a more positive outlook for the property market?

I just want to summarise these very quickly. Certainly, we are seeing a recovering economy. Yes, it is patchy. It is uncertain and unclear but the path is clearer and clearer. We’re certainly treating the virus better, we’re getting better health outcomes and obviously we will see a vaccine at some point. That improving economy, greater mobility for people to move around, border openings to see people move, opening up of restaurants and bars and travel is going to also see us spending more money in the economy.

There’s definitely a consumer sentiment recovery as we continue to get on top of those outbreaks that is positive for us. There is a recovery in the jobs market, which we’re definitely seeing showing up in the unemployment rate. More to be done there and more stimulus to be added. When we turn our attentions to property stimulus, we obviously saw the government announce on the weekend as part of this budget announcement tonight that there will be a further 10,000 home deposit places available for people with some changes to that. Only a 5% deposit needed and it’s going to focus on new construction so that is also going to put some further stimulus in the construction centre in the residential marketplace. Then we also are starting to see a reduction in the risk in regards to mortgage defaults –and I want to spend a moment in talking about this because the systemic risk has faded. We did see reported from APRA that across all of the ADI’s loans that are subject to mortgage deferrals, total 229 billion or 8.5% of all loans according to that APRA data.

Now, the housing loans subject to repayment deferrals accounted for 160 billion of that 229 billion or 9% of all housing loans. Now, that’s down off its peak. This is where it gets quite interesting. Exits from the deferrals continue to outweigh new entries for the second straight month. So what we’re seeing there is there was 24 billion loans expired or exited deferrals, which means that they are now back on track and they are not pushing can down the road and there were $14 billion worth of entries were approved or extended. That would most likely be people in the Melbourne property market where they have been impacted by their job security. There they have pushed the can down the road. Most importantly, the pace of exits has slowed over August, with total exits of 24 billion in August compared to 40 billion in July. Now that’s a drop 41%. So that’s basically still saying that the exits are slowing but we’re now starting to see the people who are at greatest risk and how we now look after those but if those numbers continue to slide down overall, we’re not going to see that systemic risk posing a problem for house prices across the whole market.

I’ve said it before, the risk is in medium and high density because I feel that there will be some exposures in those markets including poor performing values and also risks around high vacancy rates in those particular areas, which is putting more pressure on household being able to service those loans. The majority of the loans have now returned to a performing status so that’s pleasing to see coming through there. Now what we’re seeing and how I summarise that is we aren’t necessarily seeing, agai,n that’s systemic risk coming from that loan deferral program that we saw. On the back of that, closing out in this area…

… Record low interest rates could potentially be going even lower and that could see some of that money passed onto lower interest rate for consumers.

Let’s hope so. We know record low interest rates also stimulate price and buyer activity so that could also bode well for improving property prices, which has a flow on wealth effect.

The other important announcement that we saw last month was the government’s proposal to remove the laws around responsible lending. This is on the back of plans to introduce a best interest duty for mortgage brokers and people facilitating lending and mortgage lending. I think this is a good decision in terms of getting the balance right. It now is still going to continue to put the onuses on the borrower to make sure that they are able to borrow that money as opposed to the onuses was on the lender, which naturally resulted in the lenders being very fastidious about how they assessed lending and that was resulting in less lending taking place. We’ve got to make sure that balance is right.

APRA now will be in control of how prudent lenders will be and ASIC will no longer, if the legislation gets passed, be responsible for administrating responsible lending laws.

Now the other good news in this legislation was, and I think it’s a smart idea that we kept the higher risk non-bank products, which was basically payday loans, small amount credit contracts and consumer leases. They will remain in place and ASIC will still be the watchdog that looks over those products and potentially can be the couple on the beat, strengthening those risks. That ensures that those vulnerable borrowers are protected because that is where those sharks play so we don’t necessarily want to see that type of market continuing to see poor outcomes for households and borrowers but more broadly speaking, with the introduction of best interest duties to making sure that we’re doing appropriate lending from a lending point of view for mortgage brokers and also the removal of the responsible lending component. Should see improved activity and lending activity which will also help the property market.

Obviously, once we get a vaccine, we will potentially see the arrival of more foreign students, which will put demand on the rental accommodation and also migrants starting to arrive as we organise that program of new arrivals into Australia as part of that. Then finally, obviously the reports coming out today that these income tax cuts will be announced tonight that will be retrospective from July. That obviously puts more money in people’s pockets. That also potentially improves borrowing capacity and that will also see some further demand stimulus coming in to the economy and into the property sector.

With all that said, if you weigh up the pros and cons of the property market, we’re potentially seeing some brighter horizons than what we may have seen potentially when we were quite panicked around the pandemic back in March and April of this year. It will be interesting to see how that plays out. We’ve being consistent in our messaging around with thinking that the property prices and the broader market will be back to positive territory. We still believe that medium and high density properties will be challenged for the short term until those foreign students and migrants start to come in reasonable numbers. That will also stimulate further activity in terms of construction for medium and high density. The broader property market, the traditional property market, the existing property market and some of that new construction in house and land, house and land packages and lower interest rates will probably see the rising tide again lifting all ships and the property prices continuing to go higher.

Again, if you haven’t already reached out to us – again, talking to the Empower Wealth Community – please do so here. If there’s an opportunity there for you, we would love to have a chat with you about looking at your borrowing power and your lending situation. That’s also available to you and our buyers agents now that all markets are open again have been actively buying in Queensland, New South Wales, Victoria and South Australia. We’ll continue on that journey. If we can help you in that space, please reach out to us. You know where to find us and also for our The Property Couch community. Remember, Knowledge is empowering but only if you act on it.

Now is the time to start doing your research and to start lining up your ducks to make sure that you can execute because we’re going to see potential strong competition in certain segments of the market and you want to be ready and organized and understand where market value is at, in particular sub-markets, so you can hopefully enter the property market as well.

Until next month, hopefully you’ll get some value added out of this information and I look forward to giving you an update on what’s next in regards to the cash rate and the economy as we see the budget effects start to flow through. We’re also going to see some announcement in the state government’s budget, which the rumour mill is suggesting that there may be some changes also in the property sector, which could be very positive to increasing demand. Stay tuned for that update in the coming month.

Until then, take care and remember, Knowledge is empowering but only if you act on it.