We are coming to the end of 2023; it has been a busy and interesting year in the industry with interest rate rises and uncertainty across the property market.

The Pearse Financial team would like to thank everyone in our network in making it another great year, we have enjoyed working with you and assisting in any way we can.

The business has welcomed Jenine as our Operations Manager, and we have seen Jackson become a certified Mortgage Broker and grow within his role.

Wishing you all a happy and safe Christmas and New Years.

Interest Rate Update

The RBA has kept the cash rate on hold at 4.35% in December, after a rate rise in November. The RBA next meets in February next year, giving everyone a two-month respite. From 2024, RBA meetings will be reduced to 8 times a year, down from 11.

The major banks are forecasting stable interest rates for the majority of 2024 and potential rate cuts between August and December. CBA are predicting up to 3 rate cuts next year and more cuts into 2025.

Property Prices

CoreLogic’s final market update of the year shows Melbourne property prices rose just 0.6% in November, the smallest monthly rise since February 2023. Despite this and the increases in interest rates, housing values have risen 3% in the last 12 months.

Source: CoreLogic

Economists are forecasting property prices to rise between 3 and 5 per cent over 2024. CBA is predicting 5 per cent growth across Australia, with Sydney’s to rise by 4 per cent, and Melbourne’s by 5 per cent.

Holiday Hours

The Pearse Financial office will be closed from Friday the 22nd of December 2023 and will reopen on Monday the 8th of January 2024. We will be monitoring our emails from time to time to ensure we can attend to any urgent matters.