Blog, GHFS News

Reflecting on 2024: A Year in Review at Greg Hearn Financial Solutions

by Greg Hearn


As the sun sets on the North Pole for another year, we’re preparing to close the chapter on 2024 here at Greg Hearn Financial Solutions. It’s been a challenging and interesting year for many, shaped by persistently high interest rates, unrealised hopes of rate cuts, and a Reserve Bank resolute in its economic management.
 
A Year of Adjustment for Many
Across my desk, I’ve seen the financial landscape shift significantly. Many clients have transitioned from enjoying healthy savings balances to relying on credit cards to manage day-to-day expenses, effectively living week to week.
 
This year, a large number of clients came off fixed-rate home loans, only to find that their existing banks were often unwilling to offer competitive rates. In many cases, we were able to secure meaningful savings by refinancing to better options. While there was early promise of rate cuts, leading to some attractive two-year fixed rates for a brief period, those opportunities have since diminished. The Reserve Bank now seems unlikely to lower rates before mid-2025.
 
Shifting Market Dynamics
These challenges aren’t isolated to individual clients – they reflect broader trends in the property market. We’ve seen a rise in property sales at losses, especially in Sydney, Brisbane, and Melbourne. Thankfully, this hasn’t been the case for any of my clients, but it’s a sign of the times.
 
That said, the market also presented opportunities. Declining property prices allowed many first-home buyers to step into the market this year, whether purchasing owner-occupied homes or investment properties. Clients have also adjusted their expectations, with some opting for duplexes instead of freestanding homes or apartments instead of townhouses. These changes reflect the tightening lending restrictions imposed on banks by the government.
 
What’s Next for Interest Rates?
Looking ahead, all eyes will be on the Reserve Bank as Dr. Jim Chalmers’ newly appointed board – comprising a majority of women – meets for the first time in February 2025. Will they align with Governor Michele Bullock’s cautious approach, or will they chart their own course?
 
For interest rates to fall, two key conditions must be met: inflation (including underlying inflation) needs to return to the 2 – 3% target range, and unemployment must rise. Interestingly, many businesses seem to be holding onto staff, possibly to avoid the challenges of rehiring when the economy improves.
 
My prediction? We’re unlikely to see a rate cut before May. While February is a possibility, the Reserve Bank will likely wait for data on Black Friday and Christmas sales, which won’t be available until March. It will be fascinating to see how the new board navigates these complexities.
 
Wrapping Up 2024
As we approach the holiday season, Greg Hearn Financial Solutions will be taking a well-deserved break. Our office will officially close from December 20th, with Kirsten returning on January 13th and myself on January 15th. While I’ll be stepping back, I’ll still be available occasionally if you need assistance – though don’t expect me to check emails or messages daily!
 
During the break, I plan to spend time surfing, cycling, practicing music, reading, and tackling a few (apparently overdue!) jobs around the house.
 
Wishing You a Joyous Holiday Season
We’d like to take this opportunity to wish you and your family a happy and safe Christmas and New Year. If you’re lucky enough to get some time off, I encourage you to use it to recharge and prepare for what 2025 will bring.
 
As always, if there’s anything you’d like to discuss, don’t hesitate to reach out.
 
Here’s to wrapping up 2024 and looking forward to a prosperous 2025!

Greg Hearn

Greg Hearn

Principal Greg Hearn, an award-winning professional with over 30 years of experience working for and with many of Australia’s largest banks and finance lenders providing residential, commercial as well as plant & equipment finance.

Ready to talk?

Schedule a ZOOM Meeting with Greg