‘How much you have to pay': Reserve Bank tipped to cut rates
'There's a lot more for sale signs going up in many streets of many suburbs around Australia,' Mr Murray said.
'Tomorrow the expectation is that there will be yet another rate cut.'
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News.com.au
an hour ago
- News.com.au
Melbourne suburbs smashing house price records after rate cuts
More than 10 Melbourne house price records have fallen since the Reserve Bank cut interest rates in February. And with mega results north of $30m the sales are proving it's not just the city's mortgage belt that have been holding out for a rate cut. Cashed up neighbours have swooped on at least two local landmarks, with title documents recently confirming the sale of a Brighton waterfront mansion understood to have topped the suburb's $31.6m record in the past month. Key underquoting fix Vic govt has dodged since 2009 Melbourne tipped to lead 2026 property boom | KPMG Meanwhile, in one of Melbourne's most affordable suburbs, Frankston North's most expensive home is now a $900,500 four-bedroom house after Sydney-based investors pushed a local buyer to the unprecedented sum at an auction in April. Renovations have also been a key factor driving home sales to new heights. In the west, the couple behind an Albion home's extension that smashed the local record by $150,000 are hunting for another project with half an eye to besting the benchmark for neighbouring Deer Park or Ardeer. Owners Emily and Dean sold their 33 Adelaide St, Albion, reno for $1.42m in late May, about 10 days after the year's second rate cut. Emily said with expectations of another cut this week boosting borrowing capacity, and likely to lower mortgage costs, she would expect more records to tumble as home renos picked up — especially in Melbourne's west. 'And the west is a great, growing space and it has a lot of potential and has reached the cusp of change, with a lot of families wanting to live in this area,' she said. The renovator added that resistance to paying record sums would also likely drop, especially for homes with exhaustive extensions and updates, as they were the most likely to tick enough boxes that buyers would see value in them — even at unprecedented prices. 'If it's a cheaper property for a cheaper price, that's great — but long-term, how much money will you tip into it to make it what you want? To buy something that's already finished will almost always be better value than doing it yourself — especially with building materials and trades and everything going up,' she said. Real Estate Institute of Victoria interim chief executive Jacob Caine said a flurry of record breaking sales was 'surprising', as Melbourne was still waiting for a 'wholesale' surge off the back of rate cuts. 'However, there's always an opportunity for standout properties to attract incredible interest and record prices,' Mr Caine said. 'And I absolutely expect that we will start to see more and more suburb records tumble as anticipated rate cuts take effect.' He added those hoping to get a record sale for their home might want to consider renovations, as there was still 'significant trepidation' around undertaking them in light of building industry difficulties that had made the few homes going the extra mile more appealing. Melbourne's Rate Cut Record Setters 'Teychel', Brighton Sold for $31.6m+ (July) Broke prior record by unknown sum Kay & Burton, Ross Savas Sold for $7.1m, March Broke old record by $2.95m Whitefox Northside, Dylan Francis 160-162 The Avenue, Parkville Sold for $7.9m+ (May) Broke old record by $800,000+ Nelson Alexander, Nicholas West 161 Beach Rd, Parkdale Sold for $5.35m (March) Broke old record by $124,000 Buxton, Matthew Cox 10-11 Timbertop Court, Frankston North Sold for $900,500 (April) Broke old record by more than $100,000 OBrien Real Estate, Mark Burke 20 Mora Ave, Oakleigh Sold for about $3.2m Broke old record by about $100,000 Ray White, Daniel Seyran 73 St Vincent Place South, Albert Park Sold for $15m+ (Off market) Broke old record by $1.2m+ Marshall White, Ben Manolitsas 26 Nicholson St, Footscray Sold for $2.665m (June) Broke old record by $465,000 Hocking Stuart, Leo Dardha 33 Adelaide St, Albion Sold $1.402m (May) Broke old record by almost $150,000 Ray White, Marcus Fregonese 11A Sage St, Oakleigh East Sold $1.603m (August) Broke old Unit record by $133,000 OBrien Real Estate, Gareth Apswoude
Sky News AU
8 hours ago
- Sky News AU
‘How much you have to pay': Reserve Bank tipped to cut rates
On tonight's episode of Paul Murray Live, Sky News host Paul Murray discusses the Reserve Bank, cost of living, Salvation Army and more. 'There's a lot more for sale signs going up in many streets of many suburbs around Australia,' Mr Murray said. 'Tomorrow the expectation is that there will be yet another rate cut.'
The Age
11 hours ago
- The Age
ASX higher on rate cut hopes; JB Hi-Fi falls
Financial stocks were stronger, with Westpac up 1.9 per cent, ANZ rising 1.2 per cent and NAB adding 0.9 per cent. Commonwealth Bank, which will deliver its results on Wednesday, was 01.1 per cent higher. Loading Energy stocks were mixed, with Woodside adding 0.7 per cent, Yancoal flat and Santos slipping 0.1 per cent. The laggards Consumer discretionary stocks were the worst performing segment, down 1.6 per cent after a strong performance last week as JB Hi-Fi slumped 8.4 per cent to $107.83 despite boosting sales and profits as long-serving CEO Terry Smart announced his departure. He will be replaced by chief operating officer Nick Wells. The leadership announcement was made on the same day its full-year results were released, revealing a 10 per cent rise in sales to $10.6 billion, and a 5.4 per cent growth in profits to $462.4 million for fiscal 2025. The company has announced a fully franked final dividend of 105¢ a share, bringing the total dividend to 275¢ a share. It has also declared a special dividend of 100¢ a share. Wesfarmers fell 1.8 per cent, Aristocrat Leisure was down 1.1 per cent and Harvey Norman slipped 2.5 per cent. Australia's tech sector was underperforming the market, down 0.4 per cent as TechnologyOne sank almost 2.9 per cent to $39.18 and Xero lost 3 per cent. Gold miners took a breather as the precious metal eased around 1.5 per cent to $US3437.1 ($5269) an ounce. The lowdown The Australian sharemarket has made a bright start to the week ahead of Tuesday's Reserve Bank decision, with financial markets expecting the central bank to deliver the third cut in official interest rates this year. The top 200 briefly hit 8852.3, topping last week's intraday record of 8848.8 amid high expectations of a cut, Moomoo market strategist Michael McCarthy said. 'What many analysts seem to overlook is that just because the RBA [Reserve Bank of Australia] can cut doesn't mean it will cut,' he said. 'While core inflation at 2.7 per cent gives the RBA room to move, an unemployment rate of 4.3 per cent means it's not under any pressure to do so.' A refusal to cut on Tuesday could have a significant impact on the share market, McCarthy said. 'We expect the RBA to cut the cash rate by 25 basis points next week to 3.6 per cent... The overall tone of the statement will likely be neutral with a dovish lean,' Citi analysts wrote in a note. All eyes will be on Tuesday's decision as earnings season is hitting its stride, with CBA, Seven West, AGL, IAG, Suncorp, Telstra, Cochlear and Origin among companies reporting this week. Meanwhile, options traders are using currencies such as the Australian dollar and euro to express bearish US dollar views after recent disappointing American economic data. The Aussie is being supported by the Reserve Bank's 'cautious and gradual' stance on easing, as well as improving risk sentiment. The euro's allure has grown from expectations an increase in regional defence spending will support the euro-zone economy, and a more hawkish-sounding European Central Bank. Meanwhile, things look rockier for the US dollar as data showed jobs growth missed expectations in July with downward revisions to prior months as well. Standard Chartered Bank has seen 'a lot of interest' in euro-US dollar and Australian dollar-US dollar call options after non-farm payrolls, according to Saurabh Tandon, global head of foreign-exchange options in Singapore. The market is focusing on upcoming events such as US inflation and the Federal Reserve's Jackson Hole symposium, he said. National Australia Bank has seen a pick-up in demand for bullish Australian dollar option wagers, as well as for those on the New Zealand dollar. 'Following the recent non-farm payrolls, we've observed significant activity in AUD/USD and NZD/USD short-dated call options, in anticipation of a busy data week, including the US CPI release and the RBA meeting.' said Con Davelis, Sydney-based head of FX options at the bank. On Friday, the S&P 500 rose 0.8 per cent, finishing just shy of the record it set last week. The benchmark index also wiped out its losses from a slide last week. The Dow Jones rose 0.5 per cent and the Nasdaq composite added 1 per cent to the all-time high it had set a day earlier. Technology companies, with their hefty stock values, did much of the heavy lifting for Wall Street. Nvidia rose 1.1 per cent and Apple gained 4.2 per cent. Gilead Sciences jumped 8.3 per cent for one of the market's biggest gains. It reported financial results that easily beat analysts' forecasts, while also raising its earnings forecast for the year. Expedia Group rose 4.1 per cent after also reporting encouraging financial results. Loading They are among the final big batch of companies within the S&P 500 to report mostly strong financial results for the second quarter. Still, many have warned that current tariffs could cut into their profits. Financial sector stocks also helped drive the market higher. Bank of America gained 2.4 per cent and Mastercard rose 2.3 per cent. Elsewhere in the market, entertainment giant Paramount Skydance slid 10.5 per cent a day after the company was created by the closing of an $US8 billion ($12.3 billion) merger of Skydance and Paramount. Shares in rival Warner Bros. Discovery sank 8 per cent. The main focus throughout the week has been on President Donald Trump's trade war and its potential impact on the US economy, as well as the Federal Reserve's interest rate policy. Trump began imposing higher import taxes on dozens of countries on Thursday. Still, the market appeared to largely shrug off the latest tariff escalation. 'The S&P 500's rebound this week may highlight the extent to which the market is becoming numb to tariff headlines,' said Daniel Skelly, head of Morgan Stanley's wealth management market research and strategy team. The unknown path of the economy amid an unpredictable tariff policy has been the key reason for the Fed to hold its benchmark interest rate steady. Loading Fed chair Jerome Powell, though, has been under increasing pressure from Trump to cut interest rates. Policy decisions aren't made solely by the Fed chair. All 12 members of the Federal Open Market Committee vote on interest rate changes. Trump has an opportunity to exert more control over the Fed following his nomination of Stephen Miran to a vacancy on the Fed's board of governors. Miran is a top economic adviser to Trump and is a near-certain vote in support of lower interest rates. The Fed's last decision to hold interest rates steady included two votes to lower interest rates. Its next meeting is in September, and Wall Street is overwhelmingly betting that the central bank will cut interest rates by a quarter of a percentage point. Wall Street and the Fed will get more insight next week on inflation's temperature and the economy. The government will publish updates on inflation at both the consumer and wholesale levels, along with a report on retail sales.
