PHOTO: Daniel Walsh, the director of the Your Property Your Wealth buyers’ agent, last year predicted ‘the cash rate will hit zero in the next few years’ and is now doubling down on his forecast. He is pictured with his wife Sophie
Zero interest rates could stop young people from getting into the housing market after the coronavirus recession is over, experts warn.
The Reserve Bank of Australia this month slashed the cash rate to a new record-low of 0.1 per cent – the third cut since March.
RBA Governor Philip Lowe declared zero were ‘extraordinarily unlikely’, but more housing market players are stepping forward to second guess the central bank.
Daniel Walsh, the director of the Your Property Your Wealth buyers’ agent, last year predicted ‘the cash rate will hit zero in the next few years’ and is now doubling down on his forecast.
Zero interest rates could stop young people from getting into the housing market after the coronavirus recession is over. House prices in October rose in every capital city except Melbourne (Doncaster house pictured) even before the latest interest rate cut
‘The pandemic added an urgency to what was likely to happen anyway with the Reserve Bank dropping the cash rate again in early November to just 0.1 per cent which, let’s face it, is zero in every sense but name,’ he said.
The worst of the coronavirus housing market downturn appears to be over with Sydney’s median house price rising 0.5 per cent in October, CoreLogic data showed.
The first monthly increase since April took mid-point values up to $993,927, cementing Sydney’s place as one of the world’s least affordable housing markets.
Melbourne was the only capital city market last month to post a house price fall – while coronavirus lockdowns continued – as 21 regions in Australia saw values hit new record highs.
Suburbs of Brisbane, Hobart, Adelaide and Canberra set new records along with coastal provincial cities from Coffs Harbour on the New South Wales Mid-North Coast to Queensland’s Sunshine Coast.
Australia’s cheapest home loans
Reduce Home Loans Rate Cutter Variable: 1.77 per cent
Homestar Finance Star Gold variable: 1.79 per cent
Pacific Mortgage Group variable loans: 1.89 per cent
UBank three-year fixed rate: 1.95 per cent
National Australia Bank four-year fixed rate: 1.98 per cent
Commonwealth Bank of Australia Wealth Package four-year fixed rate: 1.99 per cent
Westpac Premier Advantage Package four-year fixed rate: 1.99 per cent
ANZ Breakfree package one, two three-year fixed rate: 2.09 per cent
NAB two and three-year fixed rate: 2.09 per cent
Westpac Premier Advantage Packet two and three-year fixed rate: 2.09 per cent
CBA two and three-year fixed: 2.14 per cent
CBA one-year fixed: 2.19 per cent
Athena variable loans: 2.19 per cent
Freedom Lend: 2.19 per cent
ANZ four and five-year fixed rate: 2.29 per cent
Source: Canstar, Finder, major banks
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