The Reserve Bank of Australia released the minutes of the most recent board

 meeting this week which reveal some interesting insights into the lifting of the

 cash rate by 0.25% earlier this month. The overall feeling of the meeting

 was that the economy was in rather good shape and although the recovery is still

 very fragile it is likely that the cash rate will continue to increase over a period of time

 back to more normal levels. Although these rate increases are likely, it appears that the RBA

 will take a cautious position. Therefore, it would seem to suggest that the increases

 to interest rates may not occur in successive months, although most economists

 seem to think there’ll be another increase in December, and are likely to be in

 25 basis point increments rather than the more aggressive 50 basis point increases.

Weekly Key Statistic - rents and yields

 

 

Whilst rents have continued to increase in the majority of areas during the last 12 months,

 the slowdown has clearly been felt in recent months with rates falling. Yields

 have generally fallen over the last 12 months and the decline has been greatest

 in recent months as rents have fallen and value growth has returned, eroding

 gross rental yields.

Latest National Auction Clearance Rates

 

Last week was one of the auction markets busiest of the year with 1,672

 auctions nationally. The weighted average auction clearance rate remained

 very healthy at 73.4% over the week. The largest auction markets recorded

 strong results with clearance rates of 70.8% in Sydney and 80.7% in Melbourne.

 It was the first time in three weeks Melbourne’s auction clearance rate had

 been above 80%.

Advertised Stock On The Market

 

 New listings to the market have increased slightly this week and sit slightly

 above 50,000, total listings also increased slightly. Compared to last year,

 new listings and total listings are well below currently indicating the good

 health of the property market. We still anticipate the slowdown is just around

 the corner as we creep ever closer to the Christmas / New Year period.

 

http://www.nobullrealestate.com.au/

RP Data Property Pulse

20/11/09