RBA cuts might increase buyer enthusiasm but won’t be enough to see serious growth in the market as buyers linger over rising living costs and macro issues such as the European debt crisis.
This is according to McGrath Estate Agents CEO John McGrath, who said that interest rates, while an important factor in people’s purchasing considerations, weren’t the only influence on people’s psyche. “The European problems are a big dark cloud and if they’re resolved I think that will have a much greater positive impact on the actions of buyers than a quarter per cent rate cut.”
McGrath added that while Australians wait for more positive signals, green shoots of growth are emerging. First home buyer activity has strengthened the market under $1m, while blue chip markets hit hard by the GFC, including the Gold Coast and Byron Bay, are showing new activity across a range of price points. Many regional markets have also seen new activity, with investors attracted to affordable properties in lifestyle areas with strong local economies.
Meanwhile, the prestige market is still lagging, McGrath said. “We need to see unemployment down, retail spending up, a resolution in Europe, improved bonuses and a good consistent quarter on the stock market for the prestige sector to move. I think we’ll see people getting back on the horse in 2012, as buying opportunities above $3m are exceptional.”
Sydney, Canberra best performers prior to RBA cut
Upward trend for Sydney rents
Fixed rates head further below 6%
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
east victoria park
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out