Thursday, July 06, 2006

Interest Rates on Hold Again !

It was pleasing to note that another rise in interest rates has been kept on hold at least for the short term. Please find following a quick snapshot of commentary on this issue :
The Reserve Bank of Australia (RBA) left interest rates unchanged for July but economists believe there may be a rise as early as next month.
ANZ head of Australian economics Tony Pearson said it was too soon to fully evaluate the impacts of the May rate rise.
“The most likely months for (monetary) policy adjustment would be August and November, following the June and September quarter inflation data,” he said.
“While we would normally suggest it would be prudent for the RBA to pause for a while, to allow time to more fully assess the impacts of the last rate increase, the robustness of economic activity and the persistence of cost and wage pressures suggests they may not have that luxury.
“The odds are rising that policy will be adjusted sooner rather than later.”
Author: AAP, Date: July 5, 2006, Publication: AAP
What we have found so interesting since the last rate rise was that it seemed to actually have a positive effect on the residential real estate market. It was almost like the rise actually galvanised people into action and they started to think seriously about making their next move. With the smaller number of homes that are traditionally on the market in winter the demand for homes has far outstripped the available supply. We have found that often properties are selling within the first couple of weeks on the market or being sold under the hammer on auction day, which is quite different from the market 12 months ago. So with Spring soon due, another stay on rate rises, and a seemingly confident market, the future looks good for both buyers & sellers alike !
All the best from us on your future real estate transaction!

Anthony Toop, Managing Director.

© Toop Real Estate Group

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