MONEY MASTER

Shares of  Reece Ltd (ASX: REH)  collapsed as much as  22%  on Monday — the sharpest single-day drop since 1978 — after the Australian plumbing supplies company reported a sharp fall in full-year profit and flagged prolonged weakness in the  US housing market . Earnings Miss and Market Reaction Net profit:  Fell  24% YoY to A$316.9m (US$205m)  for the year ending June 30, missing analyst expectations. Revenue mix:  The US accounted for  57% of total sales , making the group heavily exposed to America’s housing cycle. Market response:  Shares plunged to their lowest in years, as investors digested the cautious guidance and deteriorating US demand outlook. US Housing Overhang Reece anticipates the  US property market will remain constrained for the next 12–18 months , citing affordability challenges and tighter financing conditions. Its warning echoes recent  profit downgrades across housing-related firms : James Hardie Indu...

In a surprise comment from the Oval Office, President Trump announced that his administration is  "thinking about no tax on capital gains on houses." This could be a game-changer — not just for homeowners, but also for real estate investors and financial planners watching for macro signals. What’s the Proposal? Currently, capital gains from selling your  primary residence  are already partially exempt ($250K for singles / $500K for married couples). Trump’s remark hints at eliminating  all  capital gains tax on home sales — potentially extending even beyond those exemptions.   Why Does This Matter? Unlocking Housing Liquidity Many long-time homeowners hold off selling to avoid taxes. A full tax exemption could flood the market with high-equity homes, increase turnover, and boost transaction volume. Potential Market Acceleration In a high-interest rate environment, this move may stimulate real estate activity from the supply side — a clever offset to slow Fe...

Real Estate Watch Mortgage rates in the U.S. fell for the fourth straight week, hitting  6.77%  — the lowest level since early May. While still close to 7%, the drop offers some breathing room for potential buyers. What’s Driving the Shift? Cooling inflation expectations and Fed rate cut optimism. Softening in new purchase contracts (-2.3% in 4 weeks). Lower listings in 20 of the top 50 metro areas — a sign some sellers are holding back. Affordability Still a Challenge Despite better bargaining power for buyers, affordability remains tight. Many economists say significantly lower rates are needed to truly stimulate demand. MoneyMaster Take — Key Insights: Lower mortgage rates = slight relief  for homebuyers. Housing market tilts toward buyers  — more choice, more negotiation power. But affordability headwinds persist  — don’t expect a boom.