Property market has spring in it's step
Spring is just around the corner and it's not just the temperature that's heating up! The property market is offering favourable conditions thanks to record low interest rates and an increase in listings
Real estate experts are predicting a spur in sales leading into spring thanks to record low interest rates and a greater volume of new listings.
The Reserve Bank's (RBA) recent decision to cut the cash rate to a new low of 1.5 per cent will have a positive effect on the real estate market with greater buying opportunities expected.
Low Consumer Price Index (CPI) data of one per cent released last week, influenced the RBA board’s decision.
The stimulus measure comes as CoreLogic reported the number of listings on the market in July was 16 per cent below the same month in 2015.
LJ Hooker Southport (LJHS) principle Alex McCormack said there had been a shortage of stock especially on the east coast, however demand was still healthy.
"We're now a month away from the peak selling season and the RBA’s move will motivate buyers even further," he said.
"There's plenty of room in the market for sellers wanting to list now; more listings will actually bring greater levels of sustainability to the market and the LJ Hooker network is already talking to sellers wanting to beat the spring rush."
LJHS sales agent Peter McCoy agreed the lower rates should keep activity levels high leading into the busy selling period.
"Spring is always a favouable time to sell. The weather is warming up, things look lighter and brighter heading out of winter and everyone has a new 'spring' in their step," he said.
"Housing prices have shown some good movement recently and while units haven't shown as much growth, we hope the reliable spring market will improve this."
Although the cash rate is at an all time low, the major banks have yet again refused to pass on the full cut citing higher costs and tougher regulation as the cause.
Queensland Treasurer Cutris Pitt has added his voice to the chorus of criticism for not passing on the full cut to their customers, and is calling on the Federal Government to do more.
"The Reserve bank has acted in the interest of our national economy, now the Federal Government needs to back them and do the same," Mr Pitt said.
And while he welcomes the decision to cut the rate and the benefits it will bring to our housing and construction sectors, he said "the cut was specifically intended by the Reserve Bank to boost employment and economic growth.
"But our economy won't see that uplift unless the cuts are passed onto customers."