Interest Rates, Purchasing Conditions & You Market conditions have changed, and we have all the details here.

Interest Rates, Purchasing Conditions & You

As we march into Spring it appears as though interest rates have hit rock bottom, according to the majority of speculators and banking experts, with the base cash rate now sitting at an historic 1.50%. It can be reasonably anticipated that the banks will maintain interest rates at these low levels to ensure the attraction of new customers and business moving into the foreseeable future. This is also in the context of our latest inflationary figures, which have shown the economy growing by 3.3% on top of 3.1% in the previous quarter.

Additionally, the Australian economy is on target to break the record of 26 years of net positive growth. This should ensure that interest rates bottom out at their current level unless something unprecedented occurs. This is perfect news for buyers and sellers within our Little Bay community.  Expect continued confidence in purchasing conditions, as financing is as accessible as it has been in recent memory and there is bountiful competition between suppliers.

Supply & Demand

The market for homes and houses has taken an interesting turn in recent months. On the one hand, indicative of a maintained buoyancy of selling conditions and prices, N G Farah just sold the stunning family residence at 45 Reservoir Street, Little Bay for $2,850,000 - a record price for this region of Little Bay outside of the Prince Henry Community. However, there are currently only approximately 10 houses listed for sale within the Little Bay area, which represents relatively low stock considering we are now in the prime selling season. Duplexes represent great value, as prices start at $1,500,000 and the standard of finishing is consistently good. Local builders are determined to ensure quality, so as to preserve and maintain value. Listings such as those at 14 & 14a Alkoo Avenue, Little Bay, being sold by Cameron Airlie and Steve Ausling, are representative of this trend.

Apartments tell a different story, with massive opportunity throughout the Prince Henry Community to lock in asset appreciation through smart Off The Plan purchasing. The most prudent example of this is at the recently completed ‘Solis’ – Prince Henry’s newest development. Savvy purchasers engaged with our Little Bay team to purchase prior to construction at price points around $800,000 and were then able to on sell within 36 months for sale prices such as $1,050,000, constituting a generous profit within a relatively short space of time. There are still opportunities such as these for those buyers who are looking to follow this example, who should make contact with our Little Bay Office post haste on 02 8020 0730.