Property News and the RBA Cash Rate:
In its first monthly board meeting for the year on Tuesday 5th February 2013, the RBA decided to hold the cash rate steady at 3 per cent. The decision follows cuts of 1.75 per cent made across November and December last year and a positive trend in housing values in the beginning of 2013. Australia’s property market has surged ahead in January, with gains focussed mainly within the Brisbane (2 per cent), Sydney (1.8 per cent) and Perth (1.7 per cent) city markets. The RP Data - Rismark daily home value index was up 1.2 per cent across Australia’s capital cities in January, a 1.8 per cent increase over the past twelve months. CommSec Chief Economist Craig James said the figures showed recent interest rate cuts and signs of improvement in the global economy have provided a boost to the housing market.
2013 Property Outlook
Michael Yardney, the director of Metropole Property Investment Strategists and one of Australia’s leading experts in wealth creation through property, is feeling optimistic about 2013 and beyond. In a global environment where bad news appears to be subsiding, he predicts that 2013 will “be a better year for Australian investors than last year, but not as good as 2014 will be”. In particular, Yardney identifies affordability, low unemployment, low interest rates and rising consumer confidence as signalling a positive outlook for property.