Reserve Bank Interest Rate Announcement

March 1, 2011 § Leave a comment

It was a case of steadying the ship as expected when the Reserve Bank met today and decided to keep interest rates on hold at 4.75 per cent.

The move comes on the back of comments by the Reserve Bank Governor Glenn Stevens last month that rates would stay on hold in the near future. 

“Mortgage holders will be breathing a sigh of relief,” says Domain.com.au blogger Carolyn Boyd. “Even though today’s decision looked like a forgone conclusion, there is always an element of doubt.” 

Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage

The official interest rate is currently 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders

By keeping rates on hold the Reserve Bank has presented borrowers with an opportunity to beat their lenders at their own game, and pay more off their mortgages before the next rate rise, which is now expected to be quite late in the year. 

Source: Domain.com.au

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Auction preview 30 and 31 October

October 29, 2010 § Leave a comment

  • Last weekend: 1,126 auctions, clearance rate of 67 per cent
  • This weekend last year: 338 auctions, clearance rate of 83 per cent
  • This weekend 2008: 176 auctions, clearance rate of 66 per cent

Comment

Unlike the past few years, the market is delivering stable and consistent outcomes. It’s also clear that conditions continue to be very favourable to buyers.

This fact was highlighted last weekend, when there were over 1,000 auctions and the proportion sold was consistent with previous weekends.

Some suburbs are defying the trend; last weekend four suburbs achieved perfect clearance rates: Collingwood, North Melbourne, Carnegie and Nunawading.

The REIV expects current strong levels of listings until Christmas and sees no evidence that the clearance rate will vary substantially from the current position.

This is a good spring to be a buyer, especially of homes being offered at auction.

Source: REIV

Luxury home prices drop

October 18, 2010 § Leave a comment

 

The bubble at the top end of Melbourne‘s property market has burst.

The latest Real Estate Institute of Victoria figures show median house prices fell in many of the city’s wealthiest suburbs in the September quarter.

Prices slumped by more than 10 per cent in 14 of Melbourne’s 40 million-dollar suburbs, with South Yarra, Brighton, Albert Park and Kew among the hardest hit.

Hawthorn fared the worst, with the median dropping 26.9 per cent to $1,197,500 in the three months to October 1.

Overall, million-dollar suburbs decreased in value by 1.6 per cent during the period.

Read more…

August REIV vacancy rates

October 6, 2010 § Leave a comment

 

Another month has passed with very little change or improvement in the availability of rental homes in Victoria.
The August release of the REIV’s residential vacancy rates showed that a mere 1.7 per cent of rental homes were vacant, the same as in July this year and slightly better than this time last year when it was 1.4 per cent.

This is in stark contrast to the first half of the last decade when rental homes were much more available; for instance, in August 2003 the vacancy rate was 3.6 per cent.

Read more…

Reserve Bank Interest Rate Announcement

October 5, 2010 § Leave a comment

It’s good news for mortgage holders today – the Reserve Bank has opted to keep rates on hold.

Although there has been talk of rate rises in recent weeks, the RBA has adopted a wait-and-see approach for another month and left official rates at 4.5 per cent. 

“Many people were bracing themselves for bad news today,” says Domain.com.au blogger Carolyn Boyd. 

Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average mortgage. Australian mortgage holders are already paying about $300 more per month in repayments than they were a year ago. 

Boyd says there is a chance of one or more interest rate rises before the end of the year. Mortgage holders should prepare now and start paying a little extra off their loans each week or month. 

The property market has remained steady in recent weeks and there has been a slower than usual start to the spring selling season. It is expected the property market will remain balanced through spring. 

Source: domian.com.au

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