The Dot Update - January 2025

Happy New Year! Welcome to this edition of the Dot Update -

MPA Top 100 Broker FY2024

I’m excited to share that I’ve been named one of the Top 100 Brokers in Australia by MPA (Mortgage Professional Australia)!

This is a huge honor, and I just wanted to take a moment to say thank you to all of my clients for your trust and support. This achievement wouldn’t have been possible without you, and I’m grateful to be part of your journey.

Thanks again for being part of this achievement.

2025 – Key Market Influences

Predicted interest rate cuts, low supply and other economic factors will continue to have a big impact on the property market in 2025.

 
It has revealed the seven key influences that will shape how the market performs throughout the year.

- Inflation: Underlying inflation remains too high, which increases household costs, which can lead
to interest rates remaining higher for longer, reducing buyer borrowing capacity.

- Interest rates: Many expected interest rate cuts in late 2024, but that did not occur. Some are
predicting three cuts in 2025, starting in April.

- Labour market: The labour market remains strong, with positive job creation, high employment
participation and an unemployment rate of 3.9%. For inflation to reach its target, the unemployment rate will need to rise to 4.5%. There is no sign of that happening soon.

- Population growth and migration: Population growth has slowed slightly but remains well above
the long-term average of 1.4%. This boosts demand for housing, pushing up prices.

- Mortgage lending: Lending continues to rise, which is driving housing demand and pushing prices
up.

- Construction costs: Material costs increased by 1.4% in the year to September 2024 and are 34.3% higher than at the start of the pandemic. While the pace of growth is slowing, costs are unlikely to
drop, leading to higher housing costs.

- Supply: The Federal Government’s Housing Accord aims to build 1.2 million new homes by 2028–
29. Dwelling approvals have increased but remain far below the level needed to meet the annual
target

As always, we hope you enjoyed reading the blog and should you have any questions, please feel free to email Connecting@dotfinancial.com.au or you can call us on 1300 000 DOT (368).