Market to maintain momentum following RBA’s latest decision

The Reserve Bank of Australia’s decision to hold interest rates is unlikely to affect the spring property market, which remains driven by low listings and strong buyer demand, according to LJ Hooker.

Elevated inflation and stable employment conditions kept the cash rate on hold, though a cut later in the year remains possible if inflation eases.

LJ Hooker Group Head of Research, Mathew Tiller, said the buyer confidence is still buoyed by last month’s reduction, with auction clearance rates remaining high at around 70 per cent. A lift in borrowing capacity and steady wage growth is also keeping buyers active.

“The spring market is in good standing because we have seen enquiry levels and sentiment continue to rise with each of the three cuts given by the RBA this year,” Mr Tiller said.

“From an economic point of view, employment remains quite steady, and that underscores the strength of buyer demand. Listings are slowly increasing, but it is starting from a low base, and as a result, we continue to see price growth in most capital cities.”

Latest Cotailty data shows Australian home prices rose 0.7 per cent across the country in August. This was led by Brisbane, up 1.2 per cent, while prices dipped 0.2 per cent in Hobart, the only capital city to record a decline.

Spring has long been considered the optimum time to sell property in Australia, but those looking to go to market this year don’t have long to prepare their homes.

Mr Tiller said, ideally, vendors should be set to go to market in the next month if they wish to have a standard four-week marketing campaign. There will likely be an auction Super Saturday in mid-to-late November.

LJ Hooker appraisal numbers are currently above average, indicating listing volumes could be set to pick up in the coming months.

“It is a good idea to sell before Christmas and take advantage of what is currently a seller’s market,” Mr Tiller said.

“Some homeowners are trying to hold out for the next rate cut as it will increase buyer budgets, but now could be a good time to sell before everyone jumps in.”