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House prices rise post-interest rate cut in Australia

House prices rose 0.3% in February after interest rate cuts, with Melbourne showing significant gains amid affordability issues.

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House prices rose 0.3% in February after interest rate cuts, with Melbourne showing significant gains amid affordability issues.

In Short

House prices in Australia have rebounded following an interest rate cut, with notable gains in Melbourne and Hobart, although rental growth has slowed. Despite increased buyer competition and challenges for first-time buyers, analysts do not anticipate a significant housing boom, as further rate cuts would be necessary to stimulate the market.

House prices have shown a rebound following an interest rate cut by the Reserve Bank of Australia.

CoreLogic reported a 0.3 per cent national rise in property values for February, signalling a recovery from a brief decline. Melbourne and Hobart experienced notable gains, while rental growth slowed to 4.1 per cent over the year, marking the smallest annual increase in years.

Experts suggest that lower interest rates enable buyers to secure larger loans, thus driving up housing prices. The recent rate cut has improved market sentiment, preventing a potential decline in property values that was anticipated due to affordability issues.

Rising prices

Homebuyers, however, are facing challenges; lower rates often correlate with rising prices, creating a catch-22 scenario. Some individuals, like first-time buyers, express frustration with being outbid at auctions due to increased competition.

While the current cash rate stands at 4.1 per cent, analysts do not expect a significant housing boom despite the rebound. Economists indicate that substantial further rate cuts would be needed to ignite growth in Australia’s high-priced markets.

In Victoria, home prices remain affordable relative to income growth, drawing first home buyers. The state has experienced slower price increases than others, influenced by increased housing supply and recent regulatory changes affecting investors.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Big Tech earnings spark investor unease over AI spending

Investors monitor Big Tech’s AI investments, with Meta thriving while Microsoft and Tesla face uncertainty over growth and returns.

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Investors monitor Big Tech’s AI investments, with Meta thriving while Microsoft and Tesla face uncertainty over growth and returns.

Investors are reacting sharply to Big Tech earnings this week, sending a clear signal that massive spending must translate into real growth. Markets are becoming less forgiving as companies pour billions into artificial intelligence, data centres and future tech while returns remain uncertain.

Meta has delivered a standout performance, posting a 24 percent jump in revenue for the December quarter, fuelled by AI-powered advertising. The company is doubling down on its strategy, with aggressive investment in AI and infrastructure expected to drive a further 33 percent growth this quarter.

Microsoft and Tesla tell a more cautious story. Microsoft reported only modest growth in its Azure cloud business, raising questions about its exposure to OpenAI, while Tesla plans to double spending on AI and autonomous driving. Analysts warn of a widening gap between bold AI ambitions and what investors expect in returns.

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Federal Reserve holds interest rates amid economic uncertainty

Federal Reserve holds interest rates steady, balancing inflation and jobs, as some governors advocate for a cut. #FederalReserve #InterestRates #Economy

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Federal Reserve holds interest rates steady, balancing inflation and jobs, as some governors advocate for a cut.

The Federal Reserve has opted to keep interest rates unchanged, marking the first pause since July. Officials are showing little urgency to resume cuts, even after previous rate reductions.

Two Fed governors opposed the decision, calling for a quarter-point cut, highlighting ongoing debates within the rate-setting committee, which includes both appointed governors and regional bank presidents.

Concerns over the job market and persistent inflation continue to weigh heavily on the Fed’s policy decisions, leaving economists and investors closely watching the next moves.

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#FederalReserve #InterestRates #Economy


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Trump warns Iran as U.S. naval forces approach amid rising tensions

Trump urges Iran to resume nuclear talks or face stronger U.S. military response amid economic struggles and tensions rise.

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Trump urges Iran to resume nuclear talks or face stronger U.S. military response amid economic struggles and rising tensions.

U.S. President Donald Trump has urged Iran to return to nuclear negotiations, warning that failure to do so could result in a far more severe military response. Posting on Truth Social, Trump signalled a hardening stance as tensions between Washington and Tehran continue to rise.

Trump confirmed that a U.S. naval strike group led by the USS Abraham Lincoln is moving towards Iran, as protests grow inside the country over alleged government repression.

The show of force comes amid heightened regional instability and mounting pressure on the Iranian leadership.

#Trump #Iran #USForeignPolicy


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