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C&G’s Guide to the July RBA Announcement
On Tuesday afternoon, the Reserve Bank of Australia announced that the national cash rate would remain on hold for another month at 1.5%. In today’s blog, C&G provide our monthly insight into the RBA’s decision and how it impacts on buyers, vendors and the property market.
For the tenth board meeting in a row, Governor Philip Lowe announced that the national cash rate would remain at an all-time low of 1.5%. This stasis was anticipated by 88% of economists, given the absence of any notable market changes across the economy. The RBA’s ‘watch and wait’ approach continues, as they look for indications from a steadily growing employment sector paired with the gradual slowing of capital city property markets.
While the national cash rate has remained on hold for over a year, lenders have been tightening the reigns on their mortgage offerings to accommodate APRA mandates. In an attempt to discourage interest-only property investment and to enhance demand from owner occupiers, lenders have been gradually increasing their rates independent of the RBA. This behaviour (which is anticipated to continue in the coming months) has already taking some heat out of the Melbourne and Sydney real estate markets, while retaining steady capital growth figures of 0.8% over the June quarter.
It’s important to note that these incremental changes to the housing market in capital cities are best understood as a gradual cooling – a small step back from incredibly complex market conditions. For both vendors and buyers, Melbourne’s Bayside real estate market continues to offer outstanding results and opportunities. With our growing population, premium locations close to amenities, transport and the beautiful beach represent incredible value to buyers. The Bayside market continues to perform well each weekend, with our sales agents achieving outstanding results for our clients. If you’re looking to buy or sell, the Chisholm & Gamon team remains on hand to assist with your property strategy.