The Reserve Bank of Australia (RBA) continues to hold the cash rate at 1.5 percent as the inflation rate remains within its target range of around 2 per cent and while business conditions continue to improve.
Overseas economic activity appears to be more buoyant with demand for our commodities trending higher and forecasts positive for the rest of the year.
The RBA noted that an additional supply of apartments coming onto the market in the Eastern States is expected to put downward pressure on price and rent growth.
The further tightening of controls on lending, designed to counteract the dominance of housing debt over household incomes, appears to be having an effect on the market.
Borrowers need to be aware of these tougher controls placed on lending, especially interest-only loans, with the banks tightening their own loan criteria – making it a little more difficult for property owners and buyers.
Now is a good time for borrowers to get a mid-year home loan health check to ensure they are well placed for the second half of 2017.