13 Aug 2014 By: Greg Hocking 0 Comment
The Reserve Bank’s recent decision to leave the official cash rate on hold at 2.5 per cent marks 12 consecutive months of record low rates. The news came as no surprise to economic forecasters, many of whom are tipping we won’t see a rise till 2015.
Both buyers and sellers will no doubt rejoice at these predictions and the stability in rates has been a major contributor to the strong buyer demand we’ve seen all year.
In the August statement, the RBA went on to say that the housing market remains strong overall, noting that a ‘strong recovery in dwelling investment is well under way, driven by low borrowing rates, growth of housing prices, significant population growth and a retargeting of government assistance for first home buyers to new homes.’
These indicators all align with new figures from the REIV which show a record $10.8 billion worth of residential property has been sold at auction so far this year, beating the last market peak in 2010 and a full 38 per cent higher than the same time last year.
The outlook for spring is indeed looking rosy.
If you’re looking to buy or sell in the months ahead, call us for professional advice and unbeatable results.