As the property market moves into a higher level of activity, we are seeing a good volume of properties coming onto the market; however, this continues to be oversold due to the high number of buyers and the current inventory levels, which are reducing across most markets.
The latest Westpac briefing paper was released this week, indicating that the official cash interest rate, according to Westpac Chief Economist Dominick Stephens, will remain at 0.25 per cent for the foreseeable future. The paper discusses developments from the past quarter, particularly how the economy has weathered the Covid-19 storm much better than anticipated, with GDP already recovering to pre-Covid levels.
The second area of discussion in the briefing paper is the housing market, which has outstripped every previous forecast. Westpac is now predicting an annual price inflation for housing that will peak at 20 per cent later this year, an increase from the previously forecasted 16 per cent.