10th May 2021 / Rob Fletcher: Market Update | 8 & 9 May 2021

We started the week with news from the Reserve Bank of Australia (RBA) that the official cash rate would be kept at 0.1%.

RBA Governor, Philip Lowe said that the RBA board did not expect the required economic conditions to increase the cash rate would be met until 2024 at the earliest. The confirmation provides greater certainty for borrowers that mortgage rates will stay low for several years.

The Federal Government's 2021 budget measures to help Australians into home ownership include first home buyer's being able to release up to $50,000 as part of voluntary contributions into their superannuation under the First Home Super Saver Scheme (an increase from $30,000). Single parents will also be able to access the Family Home Guarantee, which will allow 10,000 applicants over four years to purchase a home with as little as two per cent deposit. The government will also provide an additional $124.7 million to states and territories to help build their public housing stock.

Over the weekend, the REIV recorded a clearance rate of 81 per cent. The Fletchers Group was thrilled to achieve a similar success rate of 82 per cent for our clients. A number of properties auctioned on Saturday attracted at least 3-4 bidders.

A highlight sale was the auction of the property at 10 Picadilly Place in Bulleen, which saw 12 bidders compete to secure the home. Boasting a spectacular view of the city skyline, the generous four bedroom home also includes an excellent entertaining area and solar-heated pool.

Success. It's a Fletchers thing.