Latest Interest Rate Rise
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Last Quarter Update
The RBA have announced an interest rate rise today. What does that mean for the value of your home?
This afternoon the Reserve Bank announced a rate rise of 0.25%, setting the cash rate at 0.35%.
This is the first rate rise that the country has seen since November 2010, but it isn’t entirely unexpected. With many commentators originally forecasting a rise of 0.15% today (and others anticipating no rate rise until June, after the election), the move shows that the RBA is willing to take strong action against rising inflation across the country. It’s expected that we’ll see a few more rate rises throughout the coming months, too.
On the back of strong media attention and speculation that a rate rise was coming, we’ve already seen some of the effects spill into the local market, with time on market increasing slightly over April and the overall supply of houses on the market increasing slightly as a result. Nevertheless, properties are still selling, with demand for homes in the area remaining fairly stable.