Leading up to the US debt debacle, we’d been reading from economic ‘experts’ that the likelihood of Australia’s interest rates going down was fairly good leading into the New Year. However from the announcement last week from the RBA that interest rates would remain steady for another month, came opinion and prediction that Australia’s interest rates could possibly increase in the not too distant future.
It seems that the Australian economy is going through a period of instability and that predictions (being just that) shouldn’t have much weight put on them, especially with so much uncertainty around the Government’s financial state.
So what does this mean for the real estate industry? Unfortunately any consumer uncertainty (especially when fuelled by the media) means that real estate transactions start to wane, however buyers and sellers shouldn’t sit idle waiting for better days to come, because those days may be further off than first thought.
We’ve seen that often a seller will hold off on selling, hoping for a rise in the real estate market, and buyers hold off waiting for interest rates to go down, and then it doesn’t happen, or the opposite happens and they’re in a worse position than what they were in to begin with.
In our opinion, if you need to sell or if you want to buy, now is as good a time as any. It’s just so hard to look into that crystal ball and know exactly what will happen – we’re on a bit of a rollercoaster of information and prediction at the moment. So if you’re in either boat, it may be a good time to start talking to your financial advisor about your options.