The recent decision by the Reserve Bank of Australia (RBA) to keep the cash rate at a low 2.75 per cent could spell good news if you’re looking for property in Brunswick.
After being reduced in May, the cash rate has remained at this low level for the past three months – and in that time, there has been a reduction in the standard variable interest rate, dropping 0.3 percentage points to site at 5.9 per cent.
“The market has been reacting positively on the recent cash rate cuts. The first quarter of 2013 had the seventh consecutive improvement in housing affordability,” said Peter Bushby, president of the Real Estate Institute of Australia, in a statement released July 2.
“Auction results are improving in strength, while increases in housing finance commitments and building activity are also positive.”
Mr Bushby also noted that the decline in mortgage interest rates has stimulated the demand of investors and non-first home buyers – inspiring confidence in the market.
Furthermore, the Adelaide Bank/REIA Housing Affordability report highlighted that the proportion of income required to meet loan repayments had decreased 0.5 percentage points and is currently sitting at 29.9 per cent.
If you’re interested in buying property in Brunswick or any of the surrounding suburbs, get in contact with the team at Ray White Brunswick to begin the process towards homeownership.