While prices are increasing, the pace of change is easing

Last week’s CPI data should give the Reserve Bank cause to pause the rate rise cycle when the Board meets again tomorrow for the last time this year.

If the Board is intent on listening to what the data is saying, the sharper-than-expected fall in inflation is evidence the tightening policy is working, and the case to leave rates  unchanged is the stronger one.

If rates remain on hold, it will be a welcome reprieve for mortgage holders this festive  season.

It will also be welcome news for vendors with their properties currently on the market and those about to list. They don’t want a dose of buyer uncertainty added into the  equation.

Buyers with the means to transact are, on the whole, cautiously optimistic in the current environment. 

There appears to be a recognition that while prices are increasing, the pace of change is easing.

CoreLogic data shows that in November, Sydney home values continued to grow however the pace of growth slowed sharply to just 0.3%, which is the smallest monthly gain recorded thus far in the recovery cycle.

While it may not be the time to snare a bargain, nor is there a need to overpay and with the future direction of rates uncertain, buyers are naturally unwilling to over extend.

It paints a pretty simple picture for vendors. Listen to your agent, price your property accordingly and you’re every chance of securing a sale before the end of the year.