Three interest rate cuts, good loans and the real estate industry. Although there is more and more evidence that the previous interest rate cuts have brought huge impetus to the real estate market in Sydney and Melbourne, this downgrade will be a $400,000 30-year mortgage. The monthly savings of 55 Australian dollars, the central bank cut interest rates have a certain boost to the real estate market. CoreLogic’s data on residential value shows that house prices have risen again in August, raising concerns among market watchers that all factors of a new round of house price increases are ready. After the RBA cut interest rates in June and July and relaxed macro-prudential safeguards, the pace of recovery in Australian prices was shocked.
In addition to the fierce market competition, and the opportunity of the Reserve Bank of Australia to lower the benchmark interest rate as early as the beginning of next month, there is also a decline in the long-term financing costs of the banking industry, which is the trigger for banks to cut interest rates. A spokesperson for the Commonwealth Bank said that banks will regularly assess their interest rate levels in order to maintain prudent loan approval standards while remaining competitive!
In the downturn lasting nearly two years, real estate prices in Sydney and Melbourne fell by about 15% and 11% respectively. With the combination of interest rate cuts and other positives, house prices began to rise. In the past four months, housing prices in Sydney and Melbourne have risen by 3.2% and 3.4% respectively. Following the modest growth in June and July, real estate prices in Sydney and Melbourne rose by 1.6% and 1.4% respectively in August. In September, Sydney house prices rose 1.6%, while Melbourne’s gains were even larger, reaching 1.8%. The market outlook still needs to be observed Under the influence of multiple positive stacks, Tim Lawless, director of research at CoreLogic, a real estate data company, said that the possibility of a house price V-reversal is increasing, but the household debt problem remains a problem for policymakers.
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