It's a matter of when, not if, the Reserve Bank will take the knife to interest rates, but first home buyers may only see a fleeting, and possibly minuscule, improvement in affordability.
It could be as early as next month and won't be any later than early in the New Year.If you are a first home buyer, it most likely will be a fleeting, and possibly minuscule, improvement.
Exactly when the Reserve Bank of Australia pulls the lever on rate cuts will depend on the data released over the next few weeks. Unfortunately, that could be enough to lure in more buyers, which will push prices higher and smash any hopes first home buyers may have — unless, of course, they have parents willing to stump up an early inheritance.When it comes to housing affordability, many merely consider the price of a dwelling.
Then came the pandemic, with an official cash rate of just 0.1 per cent, which lifted affordability levels back to where they were at the turn of the century.Photo shows Crowd of people on the streets of Sydney But since the beginning of last year, against all logic, they surged again, primarily because population growth began to outstrip housing supply.
For those aged more than 70, the proportion of Australians owning a home now is roughly the same as that in 1981.
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