On Tuesday the 3rd of March the Reserve Bank Of Australia cut official interest rates by 25 basis points to a new record low of 0.5 per cent because of an expected delay in full employment and the inflation target being met because of the global coronavirus. The RBA also signalled it was prepared to cut further, if needed.
The major Australian banks Westpac, Commonwealth Bank, ANZ and National Australia Bank all moved to pass on the full rate cut after the announcement along with 31 other lenders across the country.
Tuesday’s rate cut has meant that mortgage rates are at an all time low with most property commentators suggesting it’s a good time to jump into the property market or take out a home loan.
Last weekend’s auction results in pockets of Sydney support this sentiment as the city’s property prices head towards an all-time high.
Over the past three months we have seen properties that went to auction in the northern beaches, inner city and eastern suburbs surpassing the recent boon-time prices, with prices in the inner west recovering to 2017 levels.
The result of record low interest rates with higher than expected demand has been that Sydney properties are spending less time on the market, new figures show, as buyers move in to secure their home or next investment ahead of potential price rises further fuelling the fear of missing out.
Last month, fewer than half the homes in Sydney were on the market for more than 30 days, which is down 26 per cent from the same time last year.