Hello and welcome to the August market update.

Hello my name is Gerard McCarthy, and welcome to this month’s market update.

As we know the RBA have kept the cash rate at 1.5%.

Significantly though the rhetoric is that the cash rate will remain stable for the foreseeable future, maybe even for the remainder of this year.

This we expect will give buyers more confidence in a market place that is readjusting itself after such a long period of strong growth.

What we are seeing though, is more people switching from interest only loans to principal interest, in particular investors reducing their borrowing capacity and cash flow, this is making investors a tad more cautious.

Of course this is good news for those currently looking to buy in this market place.

Auction clearance rates remain steady at around the 70% mark.

Home loan approvals according to ApRA have increased significantly over the last month. Suggesting as we move toward spring where we traditionally will have more properties come to the market place, we expect to see a lot more competition.

Let’s see what happens, my name is Gerard McCarthy, hope to see you out and about.

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