Interest rates are on hold again but investors aren’t taking chances.
More investors are choosing to fix their rates, according to Mortgage Choice.
Almost a third of new borrowers are locking in and taking advantage of the historical low-rates on offer.
New South Wales borrowers are particularly keen on fixed rates – and I guess that could be due to rising prices in Sydney. Perhaps borrowers are pushing themselves to the max and wanting to make sure they can afford repayments down the track.
In other news, it appears there’s a first homebuyer slump in WA. The first homebuyer numbers there have continued to fall. In fact, they’ve dropped by about 20 per cent since June last year.
While the Sydney property market steams ahead, some of the slower markets might be showing signs of a comeback.
Adelaide hasn’t had much growth over the past few years but new figures by SQM Research reveal that there’s been an eight per cent decrease in stock for sale in Adelaide. Stock for sale has also decreased by four per cent in Brisbane and by 13 per cent in Canberra.
Less stock always leads to increased demand and competition which leads to increasing prices. Watch this space.