Real estate institutes predict positive effects for residential property market
First time buyers, property owners and home sellers will all be affected by the Reserve Bank of Australia's decision to cut the interest rate to 2.75 per cent, according to real estate institutes around the country.
Real estate institutes are beginning to react to the decision, and are drawing various conclusions for what it will mean for the property industry.
The Real Estate Institute of New South Wales have said that the cuts are "better late than never", saying that given the current state of the economy, the decision was the correct one.
NSW Institute chief executive officer Tim McKibbin said: "We have been calling for another cut in interest rates for some time."
In South Australia, the institute there had similar sentiments, saying that some people have been putting off buying a house until there was a cash rate drop, and that first home buyers in particular will remain "particularly cautious".
SA Institute president Greg Moulton was restrained in his statement, saying "we are seeing a watchful interest in the housing market with both buyers and sellers genuinely anxious about taking the next step and a cut in interest rates may just be the deciding factor".