While some industry stakeholders have been quick to slam the Reserve Bank’s rate decision, others have called it the “right choice”.
Yesterday, Ray White revealed strong March sales, suggesting the decision to leave the cash rate on hold at 4.25 per cent is in line with the current state of the domestic real estate market.
Ray White group chairman Brian White said his network's turnover for March - a traditionally strong month in property - was a positive sign for the broader market.
"Ray White Group’s March figures were a pleasant surprise, suggesting that the Reserve Bank of Australia's decision to keep rates on hold was not imprudent," Mr White said.
"The Group sees the March results as, perhaps, the key monthly indicator for the entire year."
"It’s the final wrap up of Summer trading. Rarely will our figures come close to March until well into Spring. So the Group’s incomplete sales results of $2.4 billion gives confidence that the Australian market is assuming a new resilience."
Mr White’s comments were supported by RP Data’s research analyst Cameron Kusher who told Smart Property Investment that while property price growth remained flat, there were still plenty of transactions occurring.
“The first two cuts we got last year provided some stability. After the first interest rate cut we saw an uptick in sales activity and I wouldn’t be surprised to see further improvements in this area over the coming months.”