The RBA Governor, Glenn Stevens has said that as far as the RBA can determine Interest Rates should remain on hold for the foreseeable future. This month saw the longest stable cash rate run for 5 years, a sure sign that things globally are giving concern to the nation's rate-setters.
Mr Stevens cites the uncertainty surrounding the events in Greece, Spain and Ireland enough cause to remain cautious for the time being. This of course is good news for borrowers who may have thought rates are going to continue to rise. There are still many schools of thought that the next move in rates may, in fact - be downwards!
Locally the Sunshine Coast Agents continue across the board to find going tough as home buyers remain cautious and consider what is happening on the market. House prices have come back on the Sunshine Coast by a small degree over the last 12 months but speculation on a meteoric rise in property values in coming years is all but quashed. Analysts have stated that the property market was over inflated to begin with and that the current shrinkage is a result of a market that has resumed some normality rather than a detraction through any related GFC hangover, although economic commentary often fuels buyer's negativity.
That being said, house prices have become very attractive nowdays. This combined with the fact that lenders are being very competitive in the market - particularly with fixed rates, means good buys all round. People who are selling need though to be mindful of the fact that unless their property represents great value in comparison to others around it, or is special in nature or location - then waiting time for an offer may be somewhat protracted.
There are definitely a few more first home buyers around and also a few first home builders now coming out of the woodwork to take advantage of the additional $10,000 building boost giving them a $17,000 head start....at least until January when the Boost offer expires.
It is not Investor central out there, that is for sure! People looking to property to stabilize any volatility in equity markets are still more cautious than ever, most likely to the capital growth prognosis for the immediate future.
What we are seeing in our office is a concerted effort from people to look at Debt Consolidation and returning their cash-flow to more manageable levels by tidying their loans into one repayment. Increased lender competition has made it easier to save lots of money by doing so.
In essence with rates on hold and relatively low, and house prices cheap in comparison to more recent times people are still thinking about moving and some of the more bullish players are doing just that...and potentially cleaning up!