Is it now a good time to buy a property?

Is it now a good time to buy a property?

Is it now a good time to buy a property?

The real estate market is beginning to cool after rapid growth. First home buyers are being advised to get in while they can, with an expected increase in interest rates later this year.

The Reserve Bank is predicted to increase the cash rate, making it more difficult for people to borrow money. The RBA held the cash rate at a record low of 0.1 percent on Tuesday.

“‘Interest rates will go up – Reserve Bank Governor Philip Lowe.”

Reserve Bank Governor Philip Lowe advised Australian homeowners to build up buffers to be ready for an interest rate rise. Dr. Lowe remains vague on the timing of a rise but says a move later this year is “plausible”.

Given the predicted rise, it could also be a good time for people with home loans to refinance their mortgage and lock in a better interest rate.

The median value for a house in Australia is now more than $1 million for the first time ever. Buyers across the country paid an average of $1,066,133 to secure a home over the past year, representing an annual increase of 25.2% and a quarterly rise of 6.5%. While the market is slowing, house prices are still predicted to increase across all capital cities in 2022. Brisbane is expected to see the most significant growth rate – 5 percent, while Perth will see the slowest price rise.

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