Newspaper article The Daily Mercury (Mackay, Australia)

Reserve Readies for a Boom Selling Season

Newspaper article The Daily Mercury (Mackay, Australia)

Reserve Readies for a Boom Selling Season

Article excerpt

Byline: Christina Zhou

THE Reserve Bank's decision to keep interest rates on hold at its first board meeting in spring spells good news for home buyers in the busy selling season.

As widely expected, the official cash rate remains at 2.5%, which marks the 13th consecutive month since the last cut by the Reserve.

In a statement issued by the RBA, Governor Glenn Stevens has reiterated that the cash rate is likely to remain unchanged for some time.

But it is not all good news with the Reserve Bank citing concerns over China's weakening property market.

Mr Stevens referred to it as "a challenge in the near term".

Even so, LJ Hooker chief executive Grant Harrod believes stable low interest rates will continue to fuel the Australian market heading into spring, and give buyers more confidence to make a transaction.

"Certainly in the last couple of months, we've been in a situation where there's been insufficient stock to meet the level of buyer interest," he said.

"We should start to see more stock come into the market, which will then address the buyer interest that's out there."

Raine & Horne chief executive Angus Raine believes this spring will be even stronger than last year. "Our agents are screaming for more property on the market," he said.

"I believe this (decision) will encourage people who may have been considering selling for a number of years to actually put their property on the market."

Ray White chairman Brian White said continued low interest rates would be good news for buyers and sellers.

"The forthcoming spring season is as good as I've seen for quite a number of years," he said. "Our offices have been reporting some very strong listings that would be marketed in spring.

"A lot of these listings have been created because people have already bought and are now selling the home they no longer need."

Domain Group senior economist Andrew Wilson said low interest rates had been an important factor in activating housing markets over the past two years. …

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