As everyone is already aware, last week saw the RBA make the surprise decision to keep interest rates stable at 3.75 per cent, which is good news for those in the Australian property market as it continues to recover after a rocky 2009. There is no doubt that most real estate agents are seeing the market continue its steady recover from where it has been, and the now stable rate is more good news for property market. How long that stability lasts, as far as the rates go, is yet to be seen however.
But while we wait to see what happens next, there is time for real estate agents, and those of us who are invested in the property market, to breathe a little sigh of relief and consider what great news it is. The group of people who are no doubt particularly pleased are those who are beginning to enter the property market in this new year.
Many of the real estate professionals that I have spoken to since the rate decision was made public say they are already seeing a lot of activity in the market place, and that shows that people are feeling more financially stable.
The RBA's decision to keep the rate unchanged will no doubt continue to help that, and will be another boost for those who want to get active in buying and selling property.
I actually think another increase was expected by most people, and even if that happened, the majority of home owners are much more financially prepared for a rise than they were a year ago.
Another group that seem to be reacting to market conditions are renters. Again, a lot of the real estate agents that I chat to through my work at Century 21 are saying that recent discussion of increasing rents has also acted as a motivator for people to re-enter the property market. Realtors out in the field are telling me that investors are a particularly active group, which again was predicted when we were all hypothosizing about the real estate market in 2010. Now that the year in question is here, the stabling of the interest rate for now will no doubt add to that trend.
Many of our local Century 21 experts are seeing a lot of investors who had been holding off on property purchases become active in the market. Many of our real estate agents are selling properties almost as soon as they're listing them at the moment. There's no disputing that the demand is there. After the RBA's stable rate announcement I suspect it will increase, so if you're considering selling, or just need some property advice, have a chat to your local property expert – a Century 21 real estate professional.