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Property Market

As we head into the Spring market, may readers will be interested in the current state of the property market. Kim Ward is Sales Director of Sandhurst Real Estate and her view is as follows:

“The past 12 months has seen a tougher than usual real estate market. And, while there have been some excellent sales results at Sandhurst, the overall picture is of buyers who have been negotiating for better prices and vendors who have accepted lower prices.

In our view, the property market at Sandhurst has been steady for the past 4 to 6 months and that the next factor to affect the Sandhurst property market will be any change of interest rates.

While there has been a steady message from the Reserve Bank over the past 9 months that interest rates were on hold with a bias towards an increase, more recently that message has changed to a bias towards an easing of rates. Such a move would be good news for the real estate market.

There will be great anticipation about interest rate changes when the Reserve Bank meets on Melbourne Cup Day – next Tuesday. Our feeling is that the RBA will leave rates on hold for another month and maybe then reduce rates by ¼% in December.

We do not expect a quarter % reduction in rates to have a marked effect on the property market but it will give property buyers a bit more confident that rates at least will not increase in the short to medium term and that won’t do the property market at Sandhurst any harm.”

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