Property sales have increased after a late start in spring property sales, which is historically the busiest time in real estate. October saw an increase in sales of property, with predictions by the real estate industry that this increase will continue. The federal election, the cold weather, school holidays and three footy grand finals during the first few weeks of spring are some of the reasons that have delayed the normal property trade activity during spring.
Now that the holidays, the election and the grand finals are done, property sellers are once again busy getting their homes ready for sale. The competition in the market is not as tight though for property prices in the major cities have either decreased, remained the same or increased only minimally.
There is a possibility that the official cash rate that is maintained by the Reserve Bank of Australia will go up by as much as 5.75 to 6 percent by next year. This news is not welcome to those who have 25-year home loans for it will cause an increase in their monthly repayments. Households have no choice but to tighten their spending once the interest rate hike is official.
Speculations are brewing that the Australian property market is in a bubble. However, the growing economy and decreasing unemployment is keeping the market away from worse conditions. If you would still like to buy a property, it is important that you keep an eye on interest rates and ensure you know how much you can borrow.
