Market Update August 2013
Global economic growth returned mixed results last month, with the US and Eurozone continuing to show signs of improvement, while China remained challenged by the growing need to realign its economy.
The US economy showed signs of recovery with improving housing and employment results coming through in July. Consumer confidence was also at a six-year high, mainly due to the increase in personal wealth tied to higher property values and stock portfolios.
Making news on the home front, Prime Minister Kevin Rudd announced there will be a Federal Election on 7 September 2013.
The Reserve Bank of Australia has cut interest rates by a further 25 basis points at its August meeting, with the 2.5% interest rate the lowest since 1959.
Australian residential property market continued its upward trend in July. Over 2013, home values in capital cities have increased 5.6% on average – with Sydney being the standout with an increase of 6.7%.
As markets continue to remain uncertain in the short term, please remember to remain focused on your long-term goals.