Expect plenty of commentary this week about the direction the Reserve Bank Board  might take with interest rates when it meets again next week.

There’s so much riding on the decision not only for owner-occupiers, investors and renters on the brink, but also for the RBA itself.

Should it raise rates again, the scene has been set with higher prices for services like dentistry and hairdressing having been pre-emptively blamed.

The release of monthly CPI data on Wednesday will likely provide some clarity as to  which way the RBA will go.

Where the cost of housing is concerned, raising interest rates is not having a dampening effect on inflation because of the severe undersupply. Instead, as rates have  risen, so have values and rents.

Housing is an essential, non-discretionary commodity and we urge the Reserve Bank to consider the impact of increasing the cash rate from this perspective.

The case to keep rates on hold is strong as people grapple with the cost of keeping a roof over their heads this festive season.

For those seeking a new roof over their head this Christmas, the conditions for buyers and renters are starkly different.

Buyers have some choice available to them. While supply overall remains extremely constrained, vendors have shown a willingness to kick off campaigns this month and  more properties are coming online in December.

Renters on the other hand have little choice. The number of homes to rent in the state remains stable yet the number of people looking for one is growing in huge numbers.

Data from the NSW Rental Bonds Board shows that the number of bonds held at the end of October was 966,316. At the end of September, the number was 966,172. 

In net terms, for the many thousands of people seeking a home to rent in October, only about 150 succeeded in finding one.

This will be the reality until more rental accommodation is available.