Prior to the Reserve Bank’s (RBA) first meeting to review interest rates in 2015, it had become a “will they or won’t they” scenario. And as usual with highly charged property scenarios, conflicting media reports only added to the confusion.
Ultimately though, the RBA did decide to cut rates to a historic low of 2.25%. And it’s no great surprise – economic growth nationally was less than half the previous year in 2014, while unemployment is currently at its highest level in 12 years.
The rate cut is great news for an already buoyant property market. A recent report from RP Data/CoreLogic revealed the Sydney median house price grew by a dramatic 14.1% last year, following 15% growth in 2013. The annualised result was boosted by an unexpected 4% growth in the December quarter, the highest recorded all year. While the city’s pace of growth is expected to slow this year, expects say the first half of the year is likely to see another spurt in prices.
Historically, our local property market’s performance is generally far less dramatic than that of our nearest capital city, with growth tending to be more consistent and moderate rather than coming in extreme peaks and troughs. Having said that, Maitland and the surrounding area was already poised for a healthy market performance this year – and this week’s bonus interest rate cut will only serve to underpin the growing confidence that’s evident in the buyers who are currently active.
In several price segments and geographical areas, there’s also a shortage of properties for sale, which will only put more pressure on already willing buyers. For property owners who’ve been considering a sale, the current environment brings ample opportunity to transact in a favourable set of circumstances.
We look forward to helping you make good property decisions,