Market Watch: Economists anticipate interest rate cut

Font size :
Economists anticipate interest rate cut
The hope of a cut in interest rates tomorrow may be premature. Despite some reports suggesting that the Reserve Bank of Australia may take action this week most economists are continuing to forecast that any cut would not be until later in the year. That could still only be a matter of a month or so and what is perhaps likely tomorrow is the RBA giving a clue to its plans. Although there would be benefits to parts of the economy from a rate cut there are also concerns specifically about the residential property market; Paul Bloxham a chief economist from HSBC told Yahoo that the RBA would have to “weigh the benefits of lower rates against the potential costs of over-inflating the housing market. We think this trade-off will see the RBA sit still with its 2.5 per cent cash rate.”
Source: Yahoo

Pricing gap between houses and units expands
The gap between the cost of a house and that of a unit has extended across many of Australia’s capital cities. According to figures from CoreLogic RP Data in the December quarter the median house price was 20 per cent higher than the median unit price with houses costing $100,000 more than units. When individual capital cities are examined the differential is even greater. In Sydney you would pay $245,000 more for a house than a unit while Melbourne ($170,000), Brisbane ($102,000), Perth ($110,000) and Canberra ($172,000) all show a gap of more than $100,000. In the other capitals the gap is less than $100,000.
Source: CoreLogic RP Data

Sydney auctions heat up
As the property auctions begin to gather pace following the Christmas slowdown one property in Sydney attracted 100 potential buyers over the weekend with families interested in its location just 350 metres from a popular primary school. There were around 100 properties listed according to the Domain Group and initial figures suggested a clearance rate of above 70 per cent. Chief economist Andrew Wilson is expecting price growth in Sydney of between 7 and 10 per cent this year following a 14 per cent increase in 2014.
Source: Domain Group

Queensland developers nominated for innovation
Seventeen developers of property in Queensland have been nominated for the annual Property Council of Australia/Rider Levett Bucknall Innovation and Excellence Awards. They include the developer that has breathed new life into the iconic Brisbane City Hall. Chris Mountford of the Property Council says that those creating affordable housing in the state are also well-represented: “Brisbane's Fitzgibbon Chase community, which will comprise around 1,350 homes on completion, is up for four awards, while The Pines Townhome Collection at the Gold Coast has been named a finalist in the newly-minted ‘Best Affordable Housing Development’ category.”
Source: Property Council of Australia

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Sep 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
  • How much do you want to borrow?
  • How much deposit do you have?
  • How much is your house worth?
  • How much do you still owe on your mortgage?
  • What type of mortgage do you have?

  • How much is your new home?
  • How much do you want to borrow?
  • How soon do you want a mortgage?
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords