May 2013 Interest Rate Drop – What Does it Mean?
May 2013 Interest Rate Drop – What Does it Mean?
We buy property. So what does the surprise interest rate drop early this week by the Reserve Bank of Australia (RBA) mean for our property buying clients. As leading Melbourne based Buyers Agents, we are uniquely positioned to comment. Currently – It is too early to tell!
This weekend the REIV is expecting around 720 auctions. (source REIV) The inner east and south east sees the highest volume of auctions this weekend with 14 expected in Richmond, Malvern East and Brighton. The clearance rate for April was 67 per cent with 1,590 of the 2,380 homes offered at auction selling. The homes sold at auction had a combined value of $1.095B. (source REIV)
Next weekend around 670 auctions are expected in Melbourne, so we will have a good idea by the close of business on the 19th of May. (source REIV)
We will be keenly watching any upward movement on auction clearance rates.
First Home Buyer Grants are ending in Victoria for established property come 1st of July, 2013
Combining the removal of the First Home Buyer Grant of $7,000 with the reduction of interest rates sets the stage for a possible rise in First Home Buyer activity in the next six weeks. Until 30th of June, if you are an eligible First Home Buyer and you buy a property for less than $750,000, you will still receive the $7,000. You must enter the contract to purchase before 1st of July but you can settle after.
For up to date information on what’s happening in real estate in Melbourne, contact Janet at jspencer@buyersolutions.com.au or 0418 101 146.
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