We're over a month into 2024, and the year certainly kick started quickly.
By now, most NY Resolutions have been dropped; but that doesn't mean you can't set your sights on a goal and work toward achieving it this year.
If you're going to set and achieve goals, you need a plan. One effective way of planning is using the SMART method:
Don't let this year go by without accomplishing and progressing toward your future goals.
How's inflation stacking up for the year?
So far, so good - November annualised data showed CPI at 4.3%, down 4.1% since Dec 2022 and down 1.1% since September 2023.
December monthly data showed annual inflation at 3.4% compared to 12 months prior (down 5% in 12 months); and the December quarter CPI was 0.6%.
Multiple this quarter by 4 to get an annualised figure, and inflation was sitting at 2.4% p/a during the Dec quarter.
CPI rose by 4.1% (adding all 4 quarters together) in 2023; however when the March quarterly data is released, we'll see 1.4% drop out of the numbers. Assuming another 0.6% quarter, this will bring CPI down to 3.3%.
Rate cuts?
The RBA announces the cash rate today. It will be clear to them that the November rate hike was a big mistake; however I do not expect a cut yet.
I guess that there might be a cut either mid-March after Dec 2023 GDP data is released, or early May after the March CPI numbers are released.
Property prices
There was a definitive dip in the markets leading into Christmas, leading many to say 2024 would be a relatively flat year.
Just as 2023 surprised everyone, so has January 2024.
Ray White, Australia's biggest real estate agency, posted their January Report titled '2024 Market Roars Back'.
In January, they saw a 24% increase in buyers attending open homes compared to last year. They also saw the average crowd of 60 people attending auctions, roughly 10% higher than last year.
Why is property still growing?
Property will continue to grow because the key drivers for property growth, supply shortage and rental supply shortage, both a result of restrictive legislation and red tape, have not been addressed.
Until these factors have been address (and there hasn't been any government action to do so so far), property will continue to grow.
I speculated in May 2023 where property prices would end at the end of 2024 - 10%, 15%, 20% higher? - 2023 saw prices grow 8.1%, and at this time, it appears as though we'll see another similar year.
Property investors, like yourselves, will be beneficiaries of this growth.
If one of your goals this year is to get into another property, the first step is to know what your Purchasing Power is.
The second step is a Strategy for getting that property.
If you've considered a property for 2024, don't waste time while markets continue to grow.
