After much speculation over the last couple of weeks, the Reserve Bank of Australia (RBA) has decided to cut the cash rate by a quarter of one per cent to 0.75 per cent. This is the third interest cut in 2019.
This is a big win for house hunters and homeowners (right on time for the peak spring period)!
Complementing this interest cut, CoreLogic released their September Home Value index which showed national house prices rose 0.9 per cent over September.
The two major capital city markets are now the best performers over the quarter. This is the first month they recorded value gains after over 18 months of declines.
Corelogic head of research Tim Lawless said the recent evidence of a strong rebound in housing values wasn't enough to stave off a rate cut.
"Lower interest rates together with a subtle loosening in credit policies and improved housing sentiment has seen national housing values recover 1.7% of the 8.4% peak to trough decline in value, with a substantially larger bounce in Sydney and Melbourne." Lawless noted.
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