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No pre-polling rate cut

On Sep 03 2013


THE Reserve Bank’s decision to keep rates on hold today is not surprising just five days out ...

THE Reserve Bank’s decision to keep rates on hold today is not surprising just five days out from the Federal Election, according to LJ Hooker, the nation’s biggest network of real estate agents.

 

Historically low rates are already driving the market, particularly in Sydney, where street records continuously are being broken as a lack of stock and strong competition pushes up house prices.

 

Deputy chair L Janusz Hooker hasn’t ruled out future rate cuts as the RBA looks to stimulate the economy and keep the Aussie dollar down.

 

``There has been a lot of excitement generated by last month’s unprecedented rate cut, so even without an upcoming Election the RBA would have been unlikely to have made another move now,’’ he said.

 

``You only have to go out on a Saturday in Sydney and see the number of people turning up at open inspections – real estate is hot at the moment.

 

``Agents are reporting an increasing number of properties are selling after the first inspection and often above expectations after fielding several offers.’’

 

Mr Hooker cautions that despite strong sales results in Sydney, it is not boom conditions with some other markets around the country still struggling.

 

For instance, in Melbourne’s CBD, apartments sales are still slow due to an oversupply.

 

It is also likely as more property comes onto the market in what is expected to be a buoyant spring, competition could ease and help stabilise prices.

 

According to Australian Property Monitors, there were 560 auctions listed this weekend in Sydney compared 330 at the same time last year. In Melbourne, 744 properties went under the hammer last weekend compared to 486 this time last year.

 

``Despite these numbers there is an undersupply of property listings in Sydney as well as in Perth, parts of Melbourne and Canberra but it will be interesting to see what will happen to prices as more stock comes onto the market,’’ Mr Hooker said.

 

``My feeling is that a change of Government will help fuel the buoyancy and there will be continued confidence and strengthening of prices.’’

No pre-polling rate cut

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