December rate helped market spring into 2013
The Reserve Bank decision to cut interest rates in December to a historic low of three per cent stimulated a rush of last minute property deals in the last few weeks of 2012, setting us up for a healthy market in 2013.
We welcomed the move knowing it would lift mortgage holders’ spirits in the lead up to Christmas.
It also helped in the short term by putting money into the pocket of mortgage holders. Psychologically the rate cut helped to get a lot of sale negotiations across the line before Christmas, and making many of our buyers and sellers happy in the process.
Some property markets had a flurry of pre-Christmas activity with auction clearances holding up well through the spring albeit on below trend sales volumes. This local activity was great for consumer sentiment and we can expect the flow on into the housing market to continue through the next six to 12 months.
In terms of our 2013 market prediction, there is still a lack of well-priced stock in many sectors so there will be good opportunities for both buyers and sellers. Investors are also more likely to make a return to the market this year.
We believe interest rate cuts will stimulate the market in 2013, with property prices predicted to rise this year by five per cent nationally.
Three-year fixed home loan interest rates are now at a ten year low, so if you are looking to buy in 2013, go to ljhookerhomeloans.com.au then get in touch with one of our experienced team to discuss the right loan for you.