Once again, the RBA has risen this time setting the official cash rate target to an enormous 1.35%.
This is the third month of back-to-back rises, adding more pressure to already stressed homeowners and buyers as the market is hit with this new wave of changes. These rises are the result of the past two tumultuous years of ups and downs caused by the Covid-19 pandemic.
Whilst this is another major change that needs to be addressed by all current and future homeowners alike, there is some hope for the next coming years. A recent study has shown that the national home price fell significantly in June this year by 0.25%. This is of course national wide meaning that, Australian’s can look forwards to further price drops with Cities such as Melbourne and Sydney (two high priced areas) falling by 0.61% and 0,04% respectively.
As for Brisbane, (named Australia’s lifestyle region) it fell 0.09%, higher than Sydney by 0.05%. This was the first-time prices had dropped in over two years since way back in April 2020 when the effects of Covid first started to set in.
With all these statistics are taking the nation by storm so it’s important to remember that whilst everything is changing rapidly and rising not necessarily for the best, what goes up must come down. In terms of Interest rates this means that they will fall, just when is the question. So, until then, as always, save and keep on saving but also look at what your savings and balance towards your home is. Speak with a consultant, speak with a real estate agent and keep up with reading these blogs as well as other research!
This will all pay off in the end, Covid can’t keep us down for much longer as the world is starting to wake up again and move forward.