Good news for everyone with a mortgage, as the RBA holds its Interest Rates for the month of December. Now we just need to wait and see if the banks do the same.
No doubt plenty of pressure has been placed on the RBA not increase rates at this time of the year when consumers are extremely cautious with their spending. We have already seen many retailers launching pre Christmas sales so as to encourage spending which has been lacking for most of the year. Retailers will certainly be glad of the RBA’s decision.
With so much uncertaintly in the rest of the world, the US still struggling, Ireland receiving massive assistance from the EU while Spain, Portugal, Belgium and Greece all on the brink of disaster, we in Australia have come out of the GFC relitaivley unscathed. We are still able to borrow from the banks without the difficulties that are faced in the UK and our housing market is very strong.
2011 will be a year to watch with interest. Buyers are still asking us when prices will fall dramatically, unfortunately we can not see this happening. Many people are looking for the drop in the market and a return of prices 5 years ago, we need to look forward rather than back. We can’t keep hoping of prices drops, as all we are likely to see in the short to medium term is for prices to hold and there is no reason why we can not see them strengthen.