RBA-Hikes-Interest-Rates-Sapphire-Queensland

The Reserve Bank of Australia lifted interest rates for the first time in 11 years on Tuesday, and the RBA rate is projected to continue to rise rapidly throughout the remainder of the year.

Is this significant in the real estate business? Yes, for two connected reasons.

To begin, national housing values have increased by 35% since the pandemic began. Even if interest rates were not increased, this rate of growth would be impossible to sustain.

Prices climbed in response to decreasing borrowing costs – a process that is nearly complete.

Second, and related to the preceding, Australia’s total price increase has already decreased. Numerous buyers and sellers draw cues from previous market performance, and the fact that growth has slowed significantly implies that prices will continue to be weak.

As a result, the expectation for an RBA rate hike is for continued flat or slightly declining prices.

However, much can change in terms of both the rate at which interest rates rise and the rate at which wages expand. While both remain uncertain at the moment, this interest rate hike will influence the real estate market as well!

Sapphire Queensland understands the suffering of the homeowners and potential buyers due to this change. We can assist you in making the right decision at this time before it’s too late.

Disclaimer



This information is for general informational purposes only and is not intended as professional advice. While we strive to present accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the content provided.



Real estate transactions and financial decisions involve complex considerations that may vary based on individual circumstances. Do not consider the content provided as a substitute for professional advice tailored to your specific situation.



Conducting thorough research and consulting with licenced and experienced professionals in the relevant fields is crucial. Every individual’s financial and real estate situation is unique, and professional advice is essential to making informed decisions.

Share On :

Related Posts

Pre-Market Property Purchase
Buy

Why You Should Consider a Pre-Market Property Purchase?

The real estate market is competitive and purchasing one’s dream property has become challenging. This is because buyers’ demand significantly intensifies once a property hits the market. However, a buyer can discover the best deals by contacting a real estate agent. These properties are known as “off-market” listings which are available for purchase but not listed. Here, considering a pre-market property purchase strategy offers you several benefits.

Read More »
Renovate or Relocate
Info

Should You Renovate or Relocate? Making the Right Choice

Deciding whether to renovate your current home or relocate to a new one is no easy task. This choice can significantly affect your finances, long-term goals and quality of life. So, before choosing any of these options one must weigh priorities carefully. 

Factors such as your financial situation, emotional attachment to your current property, potential property value, and the appeal of your current location compared to other options will be crucial.

Read More »
Long-Term Investment
Invest

How to Turn Your First Home into a Long-Term Investment?

Investing in financial property is more than just an economic move. It can be a foundational piece of your long-term financial strategy and an exciting milestone. While some homeowners may consider upgrading their current property, some may turn it into an investment.
Here are some practical tips to help you turn your first home into a profitable asset over time.

Read More »

Talk to our property experts for free, independent advice.

Thank You!

Your submission was successful.

We will contact you soon