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Rate cut unlikely to cause property market surge
“Generally speaking, when interest rates do come forward the impact has always had a bit of a lag in it,” Mr Percudani said.
“It is six to nine months, or two to three quarters before it [a rate adjustment] actually manifests itself into the community.”
Michelle Harvey, director of hockingstuart Mooroolbark agrees with Mr Percudani and said it will take a lot more than a 25 basis point rate cut to significantly stimulate the property market.
“I do not believe it will have a huge effect like some economists are claiming but it may be a bit early to tell,” Ms Harvey said.
“If the RBA backs up the November rate cut with a similar move in the near future, than we will see more confidence in the property market, but I don’t expect to see much change now.”