Now that we are well into February we are seeing market activity slowly increase. The number of auctions being held is ramping up and the amount of properties advertised for sale are returning to their pre-Christmas period levels.
This week interest rates were slashed to their lowest level since 1964, and by most accounts there will more to come. The latest cuts to the official cash rate will bring the average standard variable rate under to around 5.85%, with all the major banks already announcing they will be passing the complete 100 basis point cut onto consumers.
With interest rates falling, property values showing modest declines, and rental rates growing, the net affect is that investment yields are improving and it is becoming more obvious for many renters that buying is an increasingly attractive option.
For first home buyers, more and more are realising that the current market conditions are stacked in their favour. This segment of the market now represents almost one quarter of all owner occupier housing finance commitments across the nation. With housing affordability now greatly improved due to rate cuts, falling housing values and the boosting of the first home owners grant, we expect the number of first home buyers in the market to continue improving through the first half of the year.
First home buyers are out in droves, but many are very hesitant to make an offer. there is still some uncertainty with job security, and many young buyers are expressing this concern to me.
Now is the time to buy and you can see some well priced properties under $300,00 at http://www.nobullrealestate.com.au/
February 6, 2009 at 8:48 pm |
I have noticed the same thing in my neck of the nation. The home sales over the past month were up over previous months and this month already looks like it will be better than last month. I hope that this trend continues across all markets.