In this week’s 2 minute property investment news video there are indications from the Reserve Bank that interest rates could still fall.
The Reserve Bank kept the cash rate on hold this month but there are indications interest rates could still fall. National Australia Bank is predicting there will be another cut in August.
It previously forecast there would be a cut in November – but that’s now been pushed forward by two months.
It follows a business conditions survey, where confidence hit a four-year low and that coupled with the mining sector slowing means NAB believes many areas of the economy including retail are still hurting.
[sam id=37 codes=’true’]While interest rates might be coming down, rents are going up in Perth? Australian Property Monitors reports rents in Perth units have increased by more than six per cent over the past quarter.
The median weekly rental for a house in Perth is now $490 per week – very close to Sydney’s median house rent of $500 per week.
There are even suggestions that Perth could soon become the most expensive capital city for tenants in Australia.
Balancing that, the Real Estate Institute of WA is warning rent prices could actually start to fall because the vacancy rate is rising. Meanwhile, sellers are being more choosy.
SQM Research says residential property ‘for sale’ listings have dropped dramatically, indicating a swing back towards a seller’s market.
In Sydney listings have fallen by a massive 23 per cent year on year. Melbourne stock levels have also decreased by 8.7 per cent.
What does that mean? Less choice for buyers, more competition and possibly increased prices. Good for sellers but not so good for buyers who have been waiting for the market to fall