I just read a report stating that residential property prices in Australia increased 3.7 per cent in September to a six year high, which inevitably is heightening the likelihood of a third consecutive rate hike in December.
Also the latest figures from Australian Property Monitors (APM) showed that Melbourne is the fastest growing real estate sector with prices rising 6.1 per cent in the third quarter of the year, the fastest quarterly increase since 2003.
With this supposed growth what do you think the likely hood that an interest rate increase happens again in Dec? Just wanted to get some of you guys perspectives on the situation.
There is no doubt that there will be further interest rate rises. Anyone borrowing should at least buffer in 2%.
Property prices isn't the only factor that RBA looks at when deciding on rates. You could see how other factors affecting economic outlook are in the next few weeks, if it's mostly bullish & rosy news, then you can almost be assured of a Dec hike. From what I've heard, even if RBA do hike rates, it'll probably be in small steps of 0.25 each time.
Like Joel said, best to factor in a few % hikes.
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