Busiest property market for four years
FOMO back in the market with super competitive auctions making it feel like 2021 when rates were very low.
BROKERS, real estate agents and conveyancers expect to see a mini housing boom when the Reserve Bank brings rates down.
While the decision by the RBA to hold the cash rate at 3.85 per cent disappointed many clients, the property professionals are all predicting significant movement in the market this year.
The minutes from the latest meeting show the board exercising a cautious approach, confounding economists and traders who were certain of a cut.
New jobs data showing an increase in unemployment has those forecasters even more confident of at least a 0.25 per cent cut to the base rate when Michele Bullock and her team meet again in August.
The prospect of a housing rebound is also likely, judging by those experts on the ground who spoke to Australian Conveyancer.
Mortgage broker Nick Clunes, who founded The Lending Lab in Sydney, said business was the best it has been in four years.
“The talk of further cuts is driving a lot of volume back through our doors,” he said.
“It’s mainly first home buyers, or couples looking to upgrade their current property.
“There is a lot of FOMO back in the market with super competitive auctions in Sydney.
“It feels very much like 2021 when rates were very low, lots of demand.”
Despite the disappointment with the rates hold at the last RBA meeting, confidence is growing because of the previous two cuts, according to Adrian Tsavalas, of Adrian William Real Estate.
He said: “We are seeing an uptick in registrations and attendees.
“And it feels as if we could be looking at another mini housing boom if we get another two or three cuts, which is what is being predicted.
“While money isn’t as cheap as it has been, it’s getting better than when we were seeing those higher inflation figures.”
With the latest school holidays over, Adrian expects to see a rush of stock hitting a market that’s short on supply.
And that will test the strength of the market, he says.
“Up until now, there’s been an emphasis on value for money,” he added, explaining that those buying or selling are content – but not jumping for joy.
“I’d say 10 to 15 per cent of vendors are really happy, another 70 per cent are content enough and there will be 5 per cent who are really unhappy.”
Conveyancer Jamie West, of Same Day Conveyancing, also thinks several rate cuts will kickstart an increased amount of activity, especially during the Spring selling season.
“If we have two more drops – and once mortgage rates start with a four – you will see a lot of investors jumping into the market,” he said.
“I think a lot of people will be waiting for the October rush.”
