4th July 2014
Market Round UP
The big news of the week has been the Reserve Bank of Australia leaving rates on hold at a record low for the 11th consecutive month, awaiting further signs that the tapering of the resource boom will not lift unemployment.
Since the board met a month ago, Australia’s annual economic growth rate has shot back up above 3 percent while the unemployment rate has stayed flat at 5.8 percent for the third month in a row.
As we commence the downhill run to the end of 2014 the prime indicators are looking up for the first time in a number of years:
- Lorne has plateaued with its average house price bottoming out at $963,571, the lowest at any stage over the last four years.
- Interest rate at historically low levels.
- Supply of stock for the first time starting to show signs of decreasing.
As an early prediction my view for the next 12 months is that we are likely to see our average and median house prices begin to firm – stay tuned!