There are a lot of things that can drive people both towards and away from real estate in Brunswick, and one important metric is interest rates. If they go too high, people might deem home loans out of reach, and decide not to touch the property market.
But if they go further down, then demand can really spike. It creates competition between buyers, and puts people selling in and around Melbourne in a good position. And given the latest decision from the Reserve Bank of Australia, we could be on the cusp of some good-looking interest rates indeed!
At its May meeting, the board of the Reserve Bank of Australia decided that the housing market had cooled down from previous concerns about overheating, to the point where a cash rate cut was seen to be a great idea.
The cash rate is now at 1.75 per cent, which is the lowest it has ever been. And according to John Cunningham, president of the Real Estate Institute of New South Wales, it means the banks should now take action.
"It is 12 months since the RBA cut interest rates to the previous low of 2.00 per cent and since then the banks have independently moved rates higher," he said in a 3 May statement.
"The banks now have a duty to pass the full benefit onto consumers."
If this does happen across the board, then everyday Australians might find it much easier to take out a mortgage and buy real estate – be it property in Flemington or elsewhere. If you're buoyed by the news and want to find out more about what's going on in our part of town, or simply have some questions about real estate in general, feel free to get in touch with us here at Ray White Brunswick.