2013 April Australian Economy and Interest Rate

At its meeting today, the Board decided to leave the cash rate unchanged at 3.0 per cent.

It's onwards and upwards. The Americans led us into the GFC. Will they lead us out of it? The USA has seen the largest rise in property values since 2006. Some areas are now reporting a severe shortage of available properties. Whilst Australia has not reached those levels there is undoubtedly more confidence and more activity in the Real Estate market.

Australia's relatively stable economy backed by a well regulated banking system has seen us being given greater representation on the world’s economic controlling bodies. Australians are coming to realise that our economy is largely isolated from a lot of the problems occurring elsewhere. Cyprus is a prime example. The on-going problems there have not had any noticeable effect on the Australian economy. Auction numbers are increasing as are the clearance rates at those auctions.

Whilst no one can predict the future it is apparent that the Housing market has in fact turned and is going upwards in both numbers of sales and in the prices being achieved. The price rises are not apparent yet, but small rises are occurring. No-one can predict the future, however there is every chance that property price are going to continue to rise now is the time to buy.