Neither up nor down – the official cash rate is, well, neutral. This is the 12th month in a row the RBA hasn’t moved on record low interest rates of 1.5%pa, and there are signs they will hold steady for the foreseeable future.
Although we are deep in the winter months, the usual quiet that falls upon the housing market at this time of the year hasn’t eventuated. CoreLogic Head of Research Tim Lawless says house prices have surged ahead in July. “It’s looking strong, and not slowing as much as expected.”
Low Interest Rates bring back First Home Buyers
Mr Lawless added that a return of first-home owners could be underpinning some of the strength following the introduction of stamp duty concessions or grants in several states on 1 July.
The strength in the housing market isn’t just in major cities. In what is being called ‘A push to the bush’, house prices in regional towns are steadily on the increase – many of these areas have seen prices surge by double digits in the past 12 months.
Elsewhere, the Australian economy remains strong. On the jobs market, unemployment dropped to 5.6% in June, the best reading since May 2013, leading to 9 consecutive months of job growth. Consumer confidence has jumped to its highest level in 4 years.
Homeowners and investors alike can rest assured their biggest asset continues to grow. If you’re thinking about selling, buying or just want more information about interest rates or the market, please don’t hesitate to contact mortgage broker.