Residential Update and Outlook | May 2026
In our latest Update and Outlook report, we are seeing several seemingly conflicting economic datasets, making it difficult to gauge the true temperature of both the wider economy and the residential property market.
On one hand, Q1 GDP grew by a healthy 0.6% and April's inflation rate dropped to 2.8%. On the other hand, business input costs are surging, and the labour market is showing distinct signed of cooling.
Within the residential sales market, both transactions and mortgage approvals have recently risen. While mortgage rates remain higher than they have been for much of the past two years, buyers don't seem overly deterred just yet, suggesting consumers may simply be accepting these higher rates as the 'new normal'.
Ultimately, our latest report sheds light on what these mixed metrics actually mean and why we should remain cautious before becoming overly optimistic.
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