As predicted, the Reserve Bank of Australia have cut rates at today’s meeting with the Cash Rate now at a historical low of 0.50%.

Their decision to cut rates is off the back of the Coronavirus causing global economic shutdown along with both wage growth and inflation still remaining stagnant.

The decision is positive for the housing sector and buyer sentiment, especially with affordability set to reach new heights amongst the acreage market.

The PM has put pressure on the banks to pass on any rate cuts, however, at this stage it looks like the banks are expected to pass on 0.08% to 0.13% with fixed rates already cut last week.

The US looks likely to also cut rates in coming weeks, which is indicative of further RBA cuts.

With the quarterly statistics in the latest Autumn edition of The Acreage Report 2020 showing a reduced number of sales during Summer compared to the Spring 2019 quarter, there’s still a large volume of acreage stock available.

This means that whilst the acreage market is still in the early stages of a ‘U’ curve recovery, right now is an opportune time for buyers to secure an acreage lifestyle or invest in affordable land bank opportunities with excellent potential returns.

The Sydney residential market has moved from the previous ‘Start of Recovery’ position on the Herron Todd White Property Clock and this month moved into the positive 9 o’clock position on the Property Clock - ‘RISING MARKET’ as the residential market remains extremely active with new record prices being achieved across lots of Sydney suburbs at present.

While money is cheap, easier to access and acreage stock volumes remain high, early Autumn is an excellent time to make your move into the acreage market if you’re looking to buy to live in or invest.

If you have any questions about buying acreage… Or, if you’re already living on acres and you’re not sure whether to sell your acreage property now or you’re currently wondering whether or not it’s better to hold, then don’t hesitate to get in contact with me to discretely discuss your plans.

I hope you find this acreage information helpful.

UPDATE: It’s great to see that the major banks have agreed to pass on the full 0.25% rate cut.

Regards

Greg Vincent