19 Nov Record rate stability
It has been over a year since the Reserve Bank raised the cash rate, and economists predict it will remain at the historic low of 2.5 per cent until 2015.
Australians have enjoyed one of the longest periods of rate stability on record, and when rates do increase, it is expected to be a gradual process with several small adjustments over an extended period.
Economist surveyed by AAP believe there is a 46 per cent chance of an increase during the third quarter of 2015, a 21 per cent chance that rates will begin to rise in the first quarter next year, an 18 per cent chance of rates to start rising in the second quarter of 2015 and a seven per cent likelihood of rate hikes from October next year.
RP Data reports that national annual house and unit sales have reached their highest levels in four years. While some economists have expressed concern about the high price of housing, it doesn’t seem to be deterring buyers.
Despite house prices increasing by 17 per cent over the 2013/14 financial year (source: APM), this has been matched by a 10.4 per cent increase in house sales and an 8.6 per cent increase in unit sales.