Despite the recent turmoil on the stock markets, the Reserve Bank of Australia has remained firm and steady, keeping official interest rates at a record low of 2%. Most analysts predicted this and believe it will remain on hold for the foreseeable future.
Low interest rates bring stability
Stability is welcomed in spring, as the already hot property market begins to warm up further. Buyers come out into the sunshine, which means that sellers follow suit. This spring is set to be particularly active, with the fluctuating stock market, investors are parking their money in property.
St George Bank chief economist Hans Kunnen says that in the past month, investors are looking to the housing market. “Property is an answer. They say, ‘I’m not having a bar of the share market; I’ll stick with bricks and mortar’.”
It’s no surprise because the housing market has been the talk of the country all year. From 1 January to the end of July, the national capital average price climbed by 9.8%, proving the housing boom isn’t just in the capital cities. Take Cairns and Far North Queensland in general – the lower Australian dollar has made Australia once again a popular tourist destination and, judging by the housing market, a popular real estate market.
Now that the winter months are over, interest rates looking set to stay low for some time to come, it’s time to dust off your options? As always, we’re here to help.