The Reserved Bank of Australia is showing optimism as house prices have increased annually by 5.5%. For the month of September alone, home values have increased by 2.5%. The value of dwelling relative to income is also below normal levels – an indication that the Nation is earning enough to purchase property.
People are starting to take notice of the Property Sector, as shown by above average auction clearance rates for the past months. Construction has also been higher than last year, a strong sign that demand for new homes are increasing. Credit growth has been mediocre, but because of low interest rates, people are most likely to take advantage of this in availing home loans.
Read more about this on the Australian Property Investor website.
The Reserve Bank has discussed the possibility of further rate cuts for next year, according to the recent release of their December 2 meeting – their last for the year.
The RBA decided to keep the interest rate at 2.5%, believing that this is enough to stimulate growth in the economy. However, further policy easing may take place early 2015 depending on the performance of key economic factors, such as the Australian currency and the inflation rate. The board members also agreed that the low interest rates have supported strong activity in the housing sector and that it is necessary to keep the rates at the current rate – and possibly lower, to support the strong market demand.
Read more about this on the Smart Property Investment website.
The following two tabs change content below.