They say no news is good news, and at the moment this is the case with interest rates. The RBA are clearly happy that all is going to plan, having decided to keep base rates on hold at the record low 2.5%.
“The Australian economy (just) surprised with strong numbers.” reports Business Insider Australia after reviewing newly released data from the Australian Bureau of Statistics.
“The good news was that economists’ expectations undershot the actual outcomes by a long way, meaning the economy is healthier than they expected.”
Lower interest rates see sales and housing on the rise
Elsewhere, property and retail centre developers Stockland confirms that both retail sales and the housing market are on the up and up: “October (retail) sales growth showed some improvement…with established house prices rising in all capital cities.”
This was backed up by the latest RP Data figures that show auction clearance rates for 2013 are much higher than 2012 and 2011.
At the low end of the market and with interest rates at historical lows, Terry Ryder of hotspotting.com believes that first home buyers are bucking traditional trends, “some are renting in the city while getting on the property ladder by buying an investment property in a cheaper location, often a regional centre.”
Overall, there’s no doubt that these are exciting times for both buyers and investors in the property market as interest rates remain low and it’s important to thoroughly research the local trends before taking the plunge.
As ever, we’re here to help and will be happy to provide any guidance that may make your next property decision a little easier.