Rates Unchanged - Melbourne Property?
The Reserve Bank of Australia has announced the outcome of its fourth board meeting of the year. As widely predicted, the RBA announced it will be keeping the cash rate on hold at 2.50%.
What’s Happening in the Melbourne Property Market
Melbourne recorded its highest property clearance rate for two months over the last weekend of April 2014 as the market resumed in full swing after the break in activity for the Easter and ANZAC Day holidays.
A total of 761 properties went under the hammer in the Melbourne metro area which was well up on the same weekend a year ago when 690 homes were auctioned.
Melbourne recorded a solid clearance rate of 73.4 per cent indicating that the market maybe steadying after signs of weakening over recent weeks.
May is shaping up as a bumper month for auctions with high activity levels for this time of the year before the usual winter chill steps in to typically deactivate the market.
The outer east resumed its mantle as the most popular area for buyers with the leading regional clearance rate of 82.4 per cent. Next best was the north with 79.6 per cent followed by the inner south with 77.4 per cent, the inner east at 75.9 per cent and the inner city with a weekend clearance rate of 71.9 per cent.
With low inflation and wages growth, high unemployment in a number of states, a steady dollar and the heat coming out of prices growth in housing markets – particularly Sydney - there is no prospect of an increase in interest rates anytime soon.
(Dr Andrew Wilson is Senior Economist for Australian Property Monitors)
As always please feel free to call us at any time if you wish to review your current finances or be of any assistance.
Adrian Rogers - Director / MFAA Credit Adviser
Peter Cleary - MFAA Credit Adviser
Until next time...