Residential buyers buoyed by November rate cut
A measurable increase in the number of residential property sales is the direct result of a previous rate cut by the Reserve Bank of Australia (RBA), according to one industry report.
Mortgage broker Australian Finance Group (AFG) registered a spike in home loan applications across the sector in November and says that the increase in demand stems directly from the RBA's decision to reduce the interest rate by 0.25 per cent last month.
General manager of sales and operations at AFG Mark Hewitt stated that the change was led by investors and first homebuyers who previously were "fearful" that the cash rate would increase in the near future.
Hewitt asserted: "The November rate cut proved to be a real turning point and the outlook is very different now.
"We're experiencing the paradox that weaker global economic conditions and lower rates is good news for Australian property buyers, at least for now."
Both Victoria and Queensland experienced a significant shift in demand - with mortgage processing rising by 26.7 per cent and 20 per cent accordingly.
In addition, New South Wales saw the highest amount of investment activity - with 44 per cent of applications originating within this market.