It's been too long we know; but our monthly newsletter is kicking back into gear and we wanted it to have a point of difference. Since our last edition, the married couple of real estate has been kicking along with a number of good listings (you can check our year to date here). You can also take a look at what has sold in your area by heading to sales stats. As we move into spring we have a few listings coming on including a development in Sandringham. (current listings and things on the cards here)
- Whats going on?
The market has been buoyant all year (news to no one) but the market has changed over the last six weeks. The LVR's (Loan to Value Ratio) have affected open home numbers. Things noticeably changed and we have seen an increase in properties being priced. The LVR's have had the desired effect. First home purchasers also felt the effects, as the 10% first home loans seemed very hard to come by. This was supposed to help the first home buyers? From what we have seen it actually has become harder for this segment to purchase. Last week Bill English came back from Washington and announced that interest rates would head back up. (good news for depositors, but bad news if you have a mortgage, hmmm is there such a thing as depositors anymore? Bonus Bonds anyone? )
Tony Alexander indicated that a further cut to the Official Cash Rate is likely, the LVR's may get tougher next year (click here for his take)..
Our takeout is that you shouldn't be sitting on your hands because the underlying supply and demand issue remains. With the news of large developments struggling with building costs and funding the supply side is shrinking further. Its a great time to purchase!