... 🏠, Interest rate increase likely in 2022. Will it impact the real estate market?
Published: Sat, 02/26/22
[Chamberlain Property Advocates]
In their more recent media releases, the Reserve Bank of Australia has reiterated that they are committed to waiting for inflation to stabilise in the 2% to 3% target range before any increase in interest rates can occur. However, most market economists are now expecting the first increase
to occur towards the latter part of 2022, possibly even earlier. Consequently, the Commonwealth Bank of Australia hinted earlier last week that it would raise interest rates as early as June.
At the moment, Australia's current cash rate is at a historic low of 0.1%, and has been since November 2020. The cash rate has not been increased since November 2010 and this announcement is likely to make many home owners nervous. Hopefully, home owners have been able to use this period of low rates to get ahead on their mortgage and build up a
buffer for when these rates do eventually rise. Through the lockdowns, people have also tended to save more which could potentially be used towards this buffer.
How interest rates affect buyers and sellers in the real estate market is different. For buyers, higher interest rates could mean that affordability decreases and that buyers have more limited budgets. Conversely, for sellers, it means that the market could slow down and it could take longer for you to get the price you want. Of course, the effect of raising interest rates on real estate is a more complicated picture and depends on the health of the economy in general, wages, employment and the ongoing effects of the pandemic.
Regardless of the changes ahead, it is important to feel confident in the real estate decisions you make and that means getting expert guidance and non-biased information. This is where Chamberlain Property Advocates can help you. With 25 years of knowledge in
buying and selling real estate, not to mention their established relationships with local real estate agents, it makes sense to have an Advocate on your side when it comes to one of the most important financial decisions you'll make - buying or selling your home.
Click below to contact us if you would like more information on how we can help.
In a market like this one, I’d want someone in my corner that I could trust, representing my best interests.
Wendy Chamberlain has been invited back as a guest speaker for Midday Panorama with Vilma Formosa on the 1st April at 12:10pm. Tune into North West FM to hear Wendy discuss the current property market.
As we head into Autumn of 2022, the real estate market in Melbourne is still challenging for those looking to buy. High clearance rates and strong buyer demand means we are still seeing a strong seller's market. As always, it pays to have an expert in your corner to guide you on your property journey.
Whether you're a first time buyer, looking to sell your home or buy your next one, I'm here to support you.
Please call the office on 03 9686 2288, book a time to chat here or send an email to firstname.lastname@example.org and we can make a time for a confidential chat. Obligation free!
I'd love to help and make things easy for you too.