SOLD signs go up as interest rates fall further
It hasn’t gained much media attention yet, but there were more moves on interest rates this week, (without any input from the Reserve Bank), that are likely to have even more positive impact on the property market in coming months. The news from our sources in the mortgage market is that competition for business between the lenders has seen several Banks dropping rates this week.
In the latest move, the Commonwealth Bank announced during the week that it would cut two, three and five-year fixed interest rates by between 0.2 and 0.8 percentage points, with cuts applying to both owner-occupiers and property investors. This move by Australia’s biggest bank comes hot on the heels of moves by Westpac, ANZ and the NAB, along with several smaller lenders, to reduce their fixed interest rate loans this month.
The Commonwealth is believed to have reduced their two-year fixed rates for owner-occupiers by more than 0.6 percentage points to 3.18 per cent. Three-year fixed rate loans are believed to have fallen to 3.28 per cent. Their largest cut was to their five-year fixed rate loan for investors.
In comparison, the ANZ Bank announced a range of cuts to its fixed rates on Thursday, with reductions ranging from 0.25 percentage points to 0.96 percentage points. The ANZ is now believed to be offering a four-year fixed rate loan for owner-occupiers at 3.53 per cent.
Perhaps the biggest message to come out of moves like these is that the Banks now believe that we will be enjoying ongoing low interest rates for quite some time to come.
The confidence that buyers are gaining from moves like this have been evident in our local market, with around 130 different buyers attending our Open Houses this week and some exciting sales being achieved, including:
Pro Hart Way, Caroline Springs: This single-level 4-bedroom home on 698sqm (pictured) was due to be auctioned this weekend, but a strong early offer of $640,000 convinced our happy vendors not to wait for auction day.
Creekside Circuit and King Drive, Hillside: Our recent record of strong results on vacant land continued, with two sales on new homesites in the Stonybrook master-planned Estate.
William Street, St Albans: A large 765sqm allotment added to the potential of this 3-bedroom home located close to all amenities. A satisfying mid-week sale was soon completed as a result.
Errington Road, St Albans: This 5-bedroom home on around 650sqm of land benefitted from a quiet off-market sale, utilising the resources of our extensive database of qualified buyers.
With so many factors currently working in favour of sellers in our local market, (from interest rates and eased lending requirements to the shortage of available property for sale), it’s a great time to be launching a property into the market. If you’d like experienced advice and guidance to ensure you don’t miss the opportunity, feel free to call us at Barry Plant Taylors Lakes on 03 9390 8333.