The Market Signals I’m Watching

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There’s been a noticeable shift in the news and media narrative around the state of the economy. Higher inflation, strong employment figures and GDP growth coming in above expectations have tempered talk of further interest rate cuts. In fact, the rhetoric has swung quite sharply, ranging from an extended hold through 2026 to commentary around the possibility of multiple increases.

Coming from a background in economics, and as both a keen property investor and real estate agent, I keep a close eye on a wide range of data points, trends and market commentators. Layered over that is the real-time feedback I gather from buyers through my listings, and from sellers as they work through their own decision-making. That combination provides a level of current, local market insight that’s hard to replicate.

When it comes to selling property, there’s far more to it than simply marketing a home. Strategy, pricing and timing all matter, and a deep understanding of what’s happening beneath the surface helps give buyers confidence in their decisions, which in turn supports sellers in achieving their best outcomes.

Below is a snapshot of the key variables currently carrying the most weight in our market. I’ll be unpacking each of these in more detail over the coming months.

7 Things I’m Watching

Interest Rates & Capital

What’s happening

RBA has changed its tune from a bias towards hiking from easing

Why it matters

Buyers getting lower principal amounts with reduced serviceability

Market impact

⬇️ Downward pressure on prices

Population

What’s happening

Increasing

Why it matters

More people = more housing demand.

Market impact

⬆️ Upward pressure on prices

Employment

What’s happening

National employment remains strong, with WA leading the charge.

Why it matters

Job security underpins buyer confidence.

Market impact

⬆️ Upward pressure on prices

Building

What’s happening

Still below long term approvals and completion

Why it matters

Increased demand for established property

Market impact

⬆️ Upward pressure on prices

Stock

What’s happening

Listing supply remains tight.

Why it matters

Owners are sitting and waiting for the right property

Market impact

🔥 Intense competition for quality homes

Investment Properties

What’s happening

Investment lending has increased significantly.

Why it matters

Rental demand remains strong due to population growth.

Market impact

⬆️ Upward pressure on prices, particularly for high-yield properties

Government – Intervening as always!

What’s happening

First Home Buyer Guarantee schemes continue, alongside

state-led zoning reforms.

Why it matters

Substantial demand on sub $850,000 properties

Possibly flooding the market with supply of development sites

Market impact

⬆️ Powerful upward pressure on prices

⬇️ Possibly downward pressure on development values