THE Reserve Bank of Australia has decided to keep official interest rates on hold at 2.5 per cent today, pleasing homebuyers and mortgage holders according to Place Estate Agents.
Place advisory director Lachlan Walker says affordability in Brisbane is at record highs.
“The Brisbane residential property market has been stable now for at least 12 to 18 months, and while we are actually now seeing signs of improvement for the first time since 2010, there hasn’t been substantial growth yet so prices are still within the reach of many buyers,” he says.
“This, combined with the record low interest rates we’ve been seeing, has created an affordability we likely won’t see again.
“While a further fall in interest rates would of course been welcomed, as it would improve affordability and confidence further, there is still a fantastic opportunity within the Brisbane market for buyers to take advantage of the current conditions.”
Walker says the recent recovery in Sydney indicates Brisbane won’t be far behind.
“Brisbane is generally 12 to 18 months behind Sydney in the property cycle, and Sydney is running hot so we know that Brisbane’s recovery will be cemented next year, and it will in fact most likely lead growth in the capital cities in 2014,” he says.
“Growth in Brisbane over the past few years has been stunted by a lack of confidence that has resulted from several events, including the 2011 floods and redundancies following the change of state government.
“Confidence is now clearly improving, however, and these 30-year low interest rates are – and will – go a long way to cementing that.”
TIME Home Loans Director Ruan Burger says the cash rate will likely start rising again at the end of next year, and banks were already factoring in this rise, with fixed rates on the way up.
“Four lenders have already increased their fixed rates, with Suncorp one of the most recent banks to have made the move,” he explains.
“Despite this there are still some great deals out there for those looking to fix – for instance Heritage Bank is offering a rate of 4.65 per cent for borrowers looking to lock in for two years.
“A rate of sub-five per cent is still really good, and certainly the lowest we have seen in a long time – current fixed rates are still at the best they have been in more than 20 years.”
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