Full minutes of the meeting follow.
House prices across the country have continued to boom in May, with the latest data showing values increased by 2.2% and 10.6% annually.
International economic development Members commenced their discussion of international economic developments by noting that the global outlook had improved, and risks had become more balanced, because of progress in vaccinations and the provision of additional fiscal support. Growth in the global economy was expected to rebound solidly in both the current and the following year. Even so, the global recovery remained uneven. Output remained well below pre-pandemic levels in a number of countries because of recurring outbreaks of COVID-19, and in some emerging market economies, where financial conditions had tightened, there was limited scope for ongoing large-scale fiscal support. The level of output was expected to remain below its pre-pandemic trajectory in many economies over the forecast period, with the United States and China notable exceptions.
It was said to be one of the most important budgets in Australia’s history, but as is often the case, there wasn’t a lot on offer for property investors. However, as we’ve seen over the past 12 months, there continues to be a large focus on helping first home buyers get into the property market.
While the pace of house price growth might be slowing, property markets are clearly still in a strong bull market.
Policy actions during COVID The Reserve Bank of Australia (RBA) has taken a number of complementary policy actions to support the Australian economy since the onset of COVID. The RBA has lowered its policy interest rate to near zero, set a target for the 3-year government bond yield, enhanced its forward guidance, commenced a program of purchasing government bonds and provided long-term low-cost funding to the banking system. I will explain each of these actions in more detail shortly.
The Chart Pack summarises macroeconomic and financial market trends in Australia and provides some information about developments for our main trading partners. The graphs in the Chart Pack are updated monthly.
One of the reasons residential real estate is one of the best investment vehicles available to Australians is because of leverage.
Over the past 12 months, we’ve started to see a lot more interest in both buying and selling property off-market.
The exceptionally strong growth in house prices shows no sign of slowing down with the latest data from CoreLogic showing dwelling values are rising at the fastest rate in 32 years.
Property prices across Australia continue to surge higher with the latest house price data showing another big jump in February. According to the latest data from CoreLogic, house prices rose by 2.1% across the nation, marking the largest jump we’ve seen since 2003.
2021 has started in strong fashion as most property markets across the country continue to see rising prices. According to the latest data from CoreLogic, house prices are up once again in February and it appears that the big banks are also predicting significant price gains over the next 12-24 months. Month to date, house prices in our major capital cities are 1.2% higher according to CoreLogic, taking the year to date gains to 1.4%. Out of Australia’s five largest cities, Perth has so far been the strongest this year, with gains of 2.4% followed by Brisbane at 1.5%.
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House prices across the nation have carried on where they left off last year, with values increasing in January.
When the time comes to sell your property, whether an investment or the family home, there are a number of small things you can do to achieve the very best result you can. The most important thing to consider when you are trying to sell you home is that if you want to get a price above what the market might consider its fair value, then you need to get multiple buyers competing. So what can you do to ensure your property appeals to as many people as you can?