Professionals Burleigh 
Buyers appear to be spooked after the recent 50 basis point increase, which changed the official cash rate to 1.35 per cent, plus indications of another increase. If you’re a vendor thinking about selling your asset, now is the time to seriously consider putting your home on the market.
Across the nation we’ve seen auction clearance rates being pushed down due to a number of factors with the national clearance rate sitting at 49 per cent. As a vendor, now would be an ideal time to put your property on the market. With the eminent interest rates rising you’d want to be a Spring buyer, therefore be a Winter seller.
Economists predict increasing interest rates over the coming months will bring the cash rate to about 2.1 per cent by the end of the year, with the average borrower looking at an extra $991 per month.
Last week, the building industry peak body called on the RBA to consider slowing the pace of interest rate rises.
“We are concerned that a continuing regime of steep rate rises risks turning the economic dial too far in the opposite direction and stalling the economic growth needed for the continuing recovery from Covid-19,” Master Builders Australia chief executive Denita Wawn said.
“Time should be given to observe the impact of the monetary policy changes in the economy.”
Commonwealth Bank, which is forecasting house prices in Sydney and Melbourne will plummet by 18 per cent by the end of next year, has said the RBA could be forced to reconsider its course of action.
“Indeed behind closed doors we believe concerns will mount at the RBA if dwelling prices slide too quickly,” Gareth Aird, head of Australian economics at CBA, wrote in his July update.
“We believe the speed and size at which home prices correct lower will ultimately act as a limit to how high the RBA will be willing to take the cash rate.”
