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Property market keen for interest rate review later this year

7 Aug 12

A cut in the official interest rate today would have been warmly welcomed by the housing sector to help stimulate further interest in the market.

The Real Estate Institute of South Australia said that it was not surprised a rate cut wasn’t delivered this month after the May and June cuts, but it hoped that a further adjustment was on the agenda during 2012.

“The May and June cuts were badly needed to encourage people back into the buyer’s market and we’ve seen a very small change in the number of people looking at property, but more impetus is needed to really stimulate a flurry of activity,” REISA President, Mr Greg Moulton said.

“People seem to be very cautious, right across all sectors at the moment, so the climate is right for a further cut to the cash rate.”

“For the owner-occupier and the investor, interest rates are one of the first considerations when buying, so the economic climate needs to be right and a cut to the cash rate will be important to create that climate.”

Commenting on general market conditions, Mr Moulton said that the amount of stock on the market is a little higher than last year, but sales volumes are also slightly up on twelve months ago.

“It’s hard work in the market at the moment, but if you analyse the figures, it’s clear that properties which are priced to meet the market are attracting interest and selling in a reasonable time frame.”

“In a harder market, it’s even more critical that the relationship between agent and vendor is strong with regular communication, so that they can react to the market and position the property to sell.”