April 29, 2010

Rate rise slowdown boosts Liverpool market

Property experts are predicting the Reserve Bank of Australia (RBA) will slow its rapid-fire approach to monetary policy, which means good news for the Liverpool real estate market.

RBA assistant governor Guy Debelle said the bank was in the process of moving its cash rate, “back to somewhere around average levels, which is not far away from where we are at the moment,” prompting economists to comment that the bank would soon pause the rapid interest rates rises.

Raine & Horne Liverpool principal Vince Labbozzetta said the impact of the five recent rate rises had not been felt yet, and the market remained healthy.

However, he warned further rises could dint market confidence.

“People are still buying property and rents are going through the roof, so we’re not feeling the impact yet,” Mr Labbozzetta said.

“However, most first home buyers have a 10% deposit and more rises will put stress on their families. It’s a big burden on them.

“Further rises would be bad for rents too, as investors would pass on extra costs. We’ll find out the effect in the next few months,” he said.

Raine & Horne CEO Angus Raine said a pause in interest rates rises would provide a significant boost for the NSW/ACT property market.

“Prices will continue to go from strength to strength. I predict price rises of 10-15% across many NSW markets, fuelled by slowing rate rises, increased migration and housing shortfalls," Mr Raine said.

“Now is the time for vendors to sell because buyers are battling it out over fewer properties,” he said.

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide. Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

For more information contact Vince Labbozzetta, Raine & Horne Liverpool on 0433 168 613 or (02) 9602 3333.