Many were actively watching and waiting for the Reserve Bank announcement yesterday on its decision to cut rates. With inflation being within the target band of 2-3 per cent there was expectation that the Reserve Bank would indeed cut the interest rates, but by how much was on the lips of many observers.
After 13 interest rate hikes between May 2022 and November 2023 the Reserve Bank has cut interest rates twice with the current interest rate now at 3.85 per cent. This is the first time the cash rate has been below 4 per cent for the first time in two years as announced by the ABC News.
There is an anticipated flow on effect with property here on the Sunshine Coast with buyer activity picking up. REA are reporting the average days on market for properties being sold in Noosaville are 54 days and for Gympie, 27 days. With prices still on the increase in both regions there is positivity amongst local real estate agents that this could be the catalyst to reduce selling times and improve consumer confidence.
This interest rate cut will help ease mortgage stress and based on a $500,000 mortgage, repayments would drop $76 to $3,164 per month. This would be based on a borrower being an owner occupier making principal and interest repayments with 25 years left on the loan on an average variable rate of 6.06%.
With limited stock, now is a fabulous time to think of selling. We have buyers ready and willing to purchase a home and our experienced sales staff at Laguna Real Estate are on the look out for properties to suit their clients needs.
If you are thinking of selling your property, call one of our team members today on 1800 357 528. We would be happy to have a friendly chat with you about your property expectations.
