Property Update
A combination of interest rate cuts, including speculation of another reduction at the Reserve Bank’s August meeting next week, and state government incentives for developers to build more homes, has put some zing back into the property market.
Indeed, the RBA’s rate cuts to date are reshaping the housing market. Lower borrowing costs equals more buyers, more confidence, and more movement. Mortgage holders are generally paying much less per month than last year. For sellers it means buyers have serious buying power.
As well, the NSW Government has embarked on a campaign to encourage development through fast-tracked approvals via the Housing Delivery Authority (HDA) and Planning Law Reform that has allowed rezoning near transport hubs like metro and train stations. These are helping to drive land values up.
While supply is growing, demand is still ahead.
What does this mean for buyers and sellers? Economists predict more rate cuts this year which means we can expect steady growth, especially in well-connected suburbs.
