Markets in a ‘sound’ state despite shift: PIPA
The winds of change are sweeping through the country’s real estate market, but for Property Investment Professionals o...
The RBA’s decision to leave interest rates on hold at 2.75 per cent is good news for buyers, according to Laing+Simmons.
However, Laing+Simmons general manager Leanne Pilkington has emphasised that suggestions of a strictly buyer's market have missed the mark.
"Demand from buyers is strong and should remain resilient throughout the winter months, so properties that do come to market can be expected to be the subject of strong competition," Ms Pilkington said.
"The continuing low interest rate environment is obviously good news for buyers, but the opportunities for vendors shouldn't be discounted.
"From an agent's perspective, there is a dearth of stock coming to market and those properties that are available are capturing broad interest. Where realistic price points are adopted, vendors are reaping the rewards.
"The decision to leave interest rates on hold after last month's cut, which was perhaps surprisingly embraced by the major lenders, maintains the attractive fundamentals for the vendor's side of the equation, as well as the buyer's."
Meanwhile, the Housing Industry Association (HIA) has voiced their disappointment at the result.
"We are disappointed that the RBA did not cut rates again today, following on from last month's reduction," said Shane Garrett, HIA's senior economist.
"A reduction in rates would certainly have been warranted; inflation is well within target, while economic activity is struggling in many important sectors like home building," Mr Garrett said. "A one-off cut in May without immediate follow-up in June simply adds to business and household uncertainty.
"Our recent policy manifesto, Housing Australians, underlines that house building is substantially lower than a decade ago, despite the fact that the population is at a record high. A continuation of this trend will mean an acute shortage of housing will emerge by the end of this decade," he warned.
Mr Garrett concluded that he would like to see further interest rate cuts to follow swiftly.