Interest rate cut
Local property market gains a confidence boost
Investors, buyers and sellers are making positive decisions following this month’s Reserve Bank of Australia (RBA) interest rate cut, says Gayndah LJ Hooker Principal Edwina Randall.
The RBA announced a 25 basis points reduction of the cash rate at its October board meeting, making it, at 3.25 per cent, the lowest since October 2009.
“The rate cut has provided a boost in our property market’s busiest season, and LJ Hooker Gayndah is seeing that through rising numbers of enquiries and inspection numbers, for example.
“The forecast from LJ Hooker is positive.” said Edwina
The company’s Deputy Chairman, L. Janusz Hooker, says research suggests the property market responds more quickly to rate cuts than the overall economy.
“This rate cut will lead to cheaper loans and add momentum to the housing market in the coming months. It could also fuel construction leading to property-related jobs and an uptick in tax revenue for the government,” he said following the RBA October decision.
“In the marketplace we have seen house prices rising on average since the last RBA rate cut in June. The LJ Hooker network of mortgage brokers sees a noticeable increase in enquiries from those looking to purchase property each time the RBA lowers the cash rate,” said Mr Hooker.
Edwina said action in the local property market had gained momentum.
“A combination of low interest rates; realistic buy-in prices with likely long-term price growth; good rental returns, low vacancy rates and high yields along with a solid local economy is encouraging more people to buy North Burnett property, whether for their own home or as an investment.
“For many home owners and potential buyers, the most recent rate cut came as a relief and a confidence boost, and should another follow we are likely to be very busy in the lead up to Christmas.”