Well we have an early Christmas present, the RBA at its monthly meeting decided to reduce the cash rate by another full one percentage point. Individual lenders will decide exactly how much they will pass on. Along with falling fuel prices we will have a healthier wallet/purse this Christmas.

The huge revival in housing prices during the 90’s was prompted by lower interest rates and all things indicate that we have a similar situation about to occur once again. 

The doubling of the First Home Owners Grant for first home buyers and a tripling for those who purchase a newly built home, along with the recent cuts in interest rates, are expected to create an increase in activity in the Australian housing market. Due to the Government’s First Home Owner’s Grant initiative the Housing Industry Association expects that there will be an increase of up to 15,000 new dwellings constructed over the next 12 months.

Falling interest rates is considered to be one of the main indicators that the property cycle has reached its bottom, and with further interest rate cuts on the horizon it would appear that the property market has passed through this phase of the cycle.

I would like to take this opportunity to wish all our valued clients and friends a happy and safe festive season and happy new year. It’s been an absolute pleasure working with you in 2008. Looking forward to a prosperous 2009.