It is probably just too early and they won’t want to be boosting bank profits as there is no guarantee now that they would follow the RBA.
A decision to keep interest rates on hold will help the property market adjust to more normal conditions following a period of extended strong growth. The Reserve Bank of Australia’s announcement yesterday to leave rates unchanged is not surprising, despite calls from the retail sector to cut them in time for Christmas spending.
While there is good argument for a reduction they will want to see the impact of recent rate increases by the four major banks. It is a tricky situation for the RBA. They haven’t seemed to be reactive to short term decisions and they will want to have some time for analysis and to monitor conditions in Sydney and Melbourne before acting.
It is probably just too early and they won’t want to be boosting bank profits as there is no guarantee now that they would follow the RBA.
A surge of listings over spring has steadied prices in parts of Sydney, but ongoing buyer demand will keep the market active over summer. This is expected to see higher sales volumes and strengthening regional markets over the coming months.
We are hearing from our offices that they are starting to get more stock and the tightness of listing is dissipating. As much as consumers want to sell their property at the top of market they don’t necessarily want to buy in that same market.
People can no longer buy, flip a house in a couple of weeks and then sell with a profit but if you bought a home five years ago, you are still going to enjoy strong returns and there will be a better selection of properties coming up for sale.
The market will have a "soft landing" as it eases into more normal buying and selling conditions. It doesn’t mean people won’t put their property on the market, to the contrary, they haven’t listed because they can’t find their next place. With more choice, they will be encouraged to put their home up for sale and this will keep up the demand.