30 December 2011
This morning, RP Data-Rismark released their monthly Home Value Index for November, which showed capital city house prices up for the first time since December 2010. According to Yellow Brick Road Executive Chairman Mark Bouris, the rise shows that the RBA’s consecutive rate cuts have provided a much needed boost for the market.
“Today’s rise in Australian capital city house prices is proof that the RBA’s rate cuts have had a real impact on immediate market recovery,” says Bouris. “The November data shows that after a price drop of nearly 4% during 2011, the market has responded quickly to the RBA’s actions. This rise is a step in the right direction and a much needed confidence builder for deflated Australian home owners. The November house price index results provide a good foundation leading into the first quarter of 2012.”
Today’s Home Value Index number is a good news story for mortgage holders as the combination of rising house prices and lower interest rates should put pressure on the banks to offer more competitive rates for borrowers. The lowest variable rate amongst the big four banks is currently 7.22 per cent p.a. offered by NAB, whilst Yellow Brick Road’s current standard variable rate is 6.44 per cent p.a.* The difference in rates would equal approximately $65,540 in savings on an average 30 year $350,000 loan.
Yellow Brick Road has seen firsthand how the recent monetary policy decisions have positively affected consumer confidence. The company, which began their “RBA Appeal” social media campaign in June, has been an advocate for interest rate cuts after hearing from families all over the country who are having greater difficulty keeping up with rising rates and living costs. Yellow Brick Road was the first lender to announce that they’d pass on any interest rate cuts in full to their customers.
“Today’s index mirrors the recent activity we’ve seen on a street level through our branch network,” says Bouris. “We believe today’s data is just the tip of the iceberg when it comes to positive house price movement heading into 2012 and it looks like for the first time in a long time, Australian home owners are taking back the market.”
*Rates as reported on canstar.com.au at time of release. For full details about Yellow Brick Road interest rates and comparison rates, see www.ybr.com.au
Copyright © 2012 Yellow Brick Road
