Interest Rate Cuts Taking Effect, Prices Up 1%
Sydney, Melbourne & Brisbane property prices up by 1% in June. RP Data Rismark have just released their latest figures which show that property prices have increased in June as the interest rate cuts over the past two months finally take effect, which is great news for those looking to purchase an investment property.
According to RP Data Rismark Darwin and Adelaide were the only two capital cities not to see a rise in property prices in June, down by 0.7% & 1.1% respectively.
Of most significance, June’s result was the strongest single monthly result since March 2010, a time when interest rates were still rebounding following the low rates that were put in place to combat the GFC.
“The catalyst for the improvement in market conditions is likely to have been the 55 basis-point reduction in the average discounted home loan rate over May and June as well as the subtle improvement in consumer sentiment readings that have been reported,” said RP Data director of research Tim Lawless.
Property is historically fairly predictable, when rates are down (which they are) and rents are rising (which they are in most capitals) then we tend to see prices increasing as more investors enter the market and as those renting decide to leave the rising rental market and buy a property to live in.