The Reserve Bank has kept the official cash rate on hold at 2.5 per cent, although many experts are now predicting them to rise by the end of the year and increasing speculation of an interest rate rise could serve to cool down house price growth further. Rates have been steady since the RBA’s decision last August to cut rates to a 60-year-low, and RBA governor Glen Stevens has restated that it is unlikely to change any time soon. “On present indications, the most prudent course is likely to be a period of stability in interest rates,” Mr Stevens said in a statement on Tuesday. The 12 economists and money experts surveyed by finder.au unanimously predicted that rates would remain on hold, with most expecting them to remain steady until the end of this year or next year. Things are not deteriorating, theyre not exactly zooming; rates are at historical lows and are slowly having an impact, said St George chief economist Hans Kunnen. Andrew Wilson, senior economist at Australian Property Monitors, believes the fallout from the Budget is one factor that could keep rates on hold for some time. ANZs head of property research, Paul Braddick, does not expect a rate to rise until February next year. So how does this effect property prices? Hopefully sellers will realise that with rates at a 60 year low, their chances of competition with respect to potential buyers is likely to be now. May continues to offer opportunities for people wanting to purchase before June 30 but I can say we are seeing stock levels to continue at the current levels throughout the colder months. Keep up with your research, if its older than 3 months it’s too old, make sure you stay close to your agent with properties moving so quick, have a strategy when it comes to crunch time and your best friend is always action – he who hesitates will lose.
Posted on: Wed, 07 May 2014 22:00:56 +0000
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