Market Report Interest Rates on hold again in August

The governor of the reserve bank of Australia Mr Glenn Stevens cautiously kept interest rates on hold last Tuesday 2nd of August 2011 when the board members of the reserve bank of Australia met.

There is no doubt there has been pressure from Governor Stevens to increase interest rates which include inflationary pressures from within Australia. Exports from the mining boom also continue to put pressure on inflation and interest rates.

Many people have described the Australian economy as a two tiered economy: One tier being mining, minerals and exports, and the other tier being retail and the domestic market. One of the reasons interest rates did not increase is figures show retail is significantly down.

At this point in time there appears to be more Australians saving money than spending money which clearly demonstrates there is uncertainty in the household and retail market. As a result of all of the above, less people are putting their houses on the market.

The limited amount of properties for sale, especially in the South East region of Sydney, is causing frustration for many buyers and in most cases buyers are motivated by a choice of properties, yet at the moment there is little choice leaving buyers a little frustrated.

If you are thinking of selling your property, there are still plenty of cashed up buyers who are prepared to pay good prices for well-located properties in Sydney´s park side and beach side markets.

Traditionally September, October and November are the prime selling months. N G Farah is quietly confident there will be more choice for home buyers over the spring and summer seasons.

The good news is that interest rates did not increase and home buyers and mortgage holders can sleep easier for the short term.