It’s been quite a year, hasn’t it? After last month’s decision to reduce interest rates, the Reserve Bank of Australia has chosen to take stock of what has been a turbulent year and has included three cuts to official interest rates, which now sits at an all-time low of 0.10%.
The RBA – and mortgage holders – will be buoyed by a predicted 7% rise in house prices next year (according to a Commonwealth Bank Report). November has seen record-low interest rates, a resurgent labour market, which has added 650,000 jobs in five months, and $394 billion in state and federal government stimulus. All of this is expected to move Australia out of a technical recession when official September quarter figures are announced tomorrow (Wednesday 2 December).
According to data from research firm Digital Finance Analytics (DFA), this positive forecast is set to create a wave of homeowners looking to change their living arrangements in 2021. DFA’s data suggests that over 1.1 million Australians intend to sell their property in the next six months.
Overall, 2021 is shaping up to be a transformative year for the Australian economy – and the housing market. So, what does this mean for you?
If you’re considering a move, 2021 will be ideal. Of course, you’ll need to consider whether you’re up-sizing or downsizing. Either way, the cost of borrowing will more than likely be to your benefit.
If you’re happy where you are, you should still consider reviewing your mortgage. There’s a good chance you can either find a better deal or renegotiate your current loan.
Whatever your plans are, we are here to help. Please feel free to contact us to discuss how we can help you in 2021.
We hope you have an enjoyable and relaxed holiday season.