Share
10th Jun 2019| Posted by: Phil Haley
Hi again,
The dust has settled & not a lot has changed on the political scene except the “Market” rose quite markedly just after Bill Shorten phoned Scott Morrison to congratulate him. Immediately the pundits claimed there would be a floor in the property market & prices would rise. Home mortgage applications have dropped continuously over the last few months. Building approvals likewise.
APRA has advised the banks to reduce their buffer between actual borrowing rate & buffered rate. As I write this the buffer is 3% plus for most lenders. APRA say 2% is enough.
Some banks have reduced their 3 year fixed rate to below 3.5% so I feel we can believe that rates are not going anywhere for the next 3 years.
I have been predicting rates will never get to the rates people in my age group have had to pay.
Why? We have inflation under control.
How? Wages are not increasing beyond inflation.
Is this good? Well it seems to be working except for those left of centre which is where the Lib/Nat & Labor seems to be so for the large part we have a consensus. Lets keep it that way, is my viewpoint, no matter which side has their snout in the trough.
Will properties rise dramatically soon? In the lower ranges & for new homes a little in the high ranges. I think it will take a while.
