2019 was a roller coaster ride for the finance industry with lots of new developments as well as issues for Australia. We are now halfway through 2020 and there is still so much to discuss in the world of finance.
Here are the top newsworthy finance trends we think needs to be navigated by professionals and consumers throughout the remainder of 2020.
RBA’s Cash Rate
2019 ended with a great note in terms of cash rate for Australians. Since October 2019, the cash rate went down to 0.75% and remained that way until March 2020 when it got even lower. This is primarily a good thing for millions of households, especially those with a mortgage.
However, Covid-19 struck and the castrate got even lower to mitigate the impacts of the pandemic. As of June 3, 2020, the cash rate remains at .25% for the last 3 months.
Housing Prices to rise
The RBA cash rate decrease since 2019 has been an amazing thing for millions of Australians. However, due to the impacts of Covid-19, the real estate industry lost billions of dollars and are looking to bounce back.
This will result in an exponential increase in house prices that is not a good thing for homebuyers. There have been several reports that house prices in Australia are starting to decline and offer more value in the future.
However, again, because of Covid-19, the entire industry, not only in Australia, was disrupted. Real estate firms had to cope with the shocks through online open houses and transactions.
The real estate industry is sure to have a big impact on Australia’s economy as it positions itself for a recovery in late 2020.
One market in Australia is booming throughout this pandemic, online payment transactions.