For the second time this year, the Reserve Bank of Australia has announced a cut to official interest rates, which now sits at 2%. This cut has been widely predicted by economists. The RBA is pleased that housing construction is now picking up the economy as investment in mining declines. To add to this good news for mortgage owners, the national auction clearance rate this weekend was the third-highest rate ever, and the highest since September 2009.
Low interest rates means greater options
The cut in interest rates is set to see an even greater push in people’s interest in the housing market – whether they are moving up the property ladder or investing, the options are set to increase.
People who are considering selling can be buoyed by high clearance rates and particularly strong market in capital cities such as Sydney and Melbourne. The number of options on the market is set to rise with this move, therefore buyers will have a far wider range of choices.
First time buyers are looking to benefit as well, with a boom in development of apartments. The Australian Bureau of Statistics has revealed that a growth in the approval for building apartments has grown by 1.8% in March to 19,333 – the tenth monthly rise in a row. St George senior economist Hans Kunnen recently stated that “monetary policy is having a positive impact on economic activity.”
So, if you are selling or buying, investing or getting a foot on the property ladder, with interest rates this low there may not be a better opportunity to look at your options. If you’d like to weigh up your next steps, please feel free to give us a call at any stage.