After ten straight monthly increases to the official cash rate, the Reserve Bank of Australia governor Philip Lowe says the central bank board could pause rate rises as soon as April, which is fantastic news for real estate owners and buyers. 

Over the next few weeks, the RBA will digest incoming data on inflation, jobs, business sentiment and consumer spending before deciding its next monetary policy move. 

In a recent speech, the RBA Governor admitted, “With monetary policy now in restrictive territory, we are closer to the point where it will be appropriate to pause interest rate increases to allow more time to assess the state of the economy”.

After watching the official cash rate climb from 0.35% to 3.6% after the most recent meeting of the RBA board, Craig Betalli, Senior Finance Specialist from Raine & Horne’s specialist financial services arm Our Broker Finance commented, “Once interest rates pause, it’s a fair bet that real estate market activity will pick up some pace and owners of quality, well-located properties will enjoy some capital growth once again. 

“We have already seen an increase in enquiries not only for refinancing but for residential and commercial property purchases,” Craig said. 

“At this stage, investors are leading the charge, although there are plenty of homeowners seeking to make a move.”

Craig advises that regardless of whether the RBA hits the pause button in April, the end of monetary policy tightening is in sight. 

“Vendors who were hesitant to sell because they were worried about the market will now seek to list their properties. Given that there is a shortage of listings across many parts of Australia, they can expect stronger results than the end of last year. 

On the demand side, Craig believes an interest rate breather will lift the lid for buyers previously concerned about how high rates will go.

“While we don’t expect values to push up the way they did during COVID, we expect annual growth will be closer to long-term returns of 5-10% for quality, well-located properties.”

Craig urged those first-time buyers considering jumping off the rental treadmill to get organised fast.

“Check in with your broker to get a handle on your borrowing capacity and credit history. If there are any financial black spots on your credit history, we will work with you to remove these financial blemishes that could affect your borrowing capacity. 

“This specialist support will enable first timers to get a preapproved home loan to put them ahead of the curve.”

If you’re considering a home loan, contact Our Broker today at 1800 913 677 for an obligation-free financial health check.