Lower Interest Rates Set Stage For First Home Buyers
Recent announcements by the Reserve Bank Of Australia (RBA), has seen interest rates hit a historical low, which appears to be realing Australians back to the property market.
Clearance rates in Melbourne and Sydney are on the rise indicating some likely price growth is on the horizon if the trend continius.
Research released by the Commonwealth Bank in July indicate that a growing number of Aussies believe the dream of owning a property is more achievable than ever before, with 91% saying that it’s within reach for first home buyers. This number is extremely encouraging when you consider that only a year ago, only one in 5 Australian believed that owning your own home was achieveable.
This sentiment is extremely positive, and whilst a number of factors have collectively contributed to this development, the APRA decision to eliminate the 7% servicebility buffer, allows banks to provide First Home Buyers more money than in the past. It appears that 2019 could be interesting for First Home Buyers as we watch carefully a number of changes evolve and ifluence the market.