Sometimes when rates go up, prices still go up too. But we digress.
The big news welcomed by home buyers and mortgage holders in May was that rates have dropped by a quarter of a per cent.
That equates to about $90 back in your pocket each month based on a loan size of $600,000, reports Yahoo Finance.
Over the course of a year that’s a cool thousand dollars or so in your bank account.
But any hip pocket relief for those with a home loan pales in comparison to the gargantuan price jump forecast for Aussie property if more rate cuts follow.
Some analysists are forecasting a median property price spike of 12 per cent over the next two years if rates are cut by a predicted 1.5 per cent by early 2026.
That’s an extra $141,000 on top of the combined capitals’ median house price, reports Domain.
For Brisbane that would mean a median house price of $1.145 million. That’s big.
Not surprisingly, some property advisors are urging their clients to buy now.
“It’s a good idea to get in before the rate cuts really buoy prices in the property market,” Metropole Property Strategists chief executive Michael Yardney told Domain.
“The drop in the rate is going to boost buyers’ budgets and also give a higher level of confidence generally, so more buyers come in.
“Also, the government is really pouring fuel onto the fire with its policy to give all first-home buyers access to 5 per cent deposits without lender’s mortgage insurance from January 1, which should push up prices at the lower end of the market, too.”
Looking to make a move before the rush? View our current listings for sale or talk to us about selling.
