The property markets in Melbourne and Sydney both look set for an inevitable drop over the next couple of years in the face of a contracting economy, poor consumer confidence and less migration.
The Reserve Bank yesterday kept rates unchanged at their historic low of 0.25 per cent.
Fixed interest rates are emerging as the major player after their average dropped lower than variable rates recently.
Prior to the coronavirus nightmare Melbourne’s median house price rose two per cent in the March quarter but is expected to start falling from this point.
Entry-level homes are currently where the action is in Melbourne’s property market while the world grapples with the spread of coronavirus.
The Victorian Government this week announced its $500 million rent package in response to the coronavirus crisis.
The best way for a lot of mortgage borrowers to access the current super-low interest rates going around is refinance their loan and turn themselves into brand new borrowers.
It’s unfortunately looking like a pretty grim picture for Melbourne and Sydney’s property markets if the coronavirus crisis deepens.
After an emergency cut to interest rates just weeks ago the RBA has this week left them unchanged at 0.25 per cent at its April meeting.
The Australian Banking Association has extended its Small Business Relief Package to include 98 per cent of all businesses with an Australian bank loan.
