Thursday, June 3, 2010

Rates on hold - Winter is a winner

Common sense prevailed at Tuesday’s Reserve Bank meeting, with the RBA announcing they will keep the cash rate on hold this month. The aggressive rate rise at the beginning of May was definitely felt at open inspections, as buyers were certainly more cautious in the preceding 3 weeks. It was amazing to see the shift last week as the media began to publish articles about the rates holding steady.

 

Now buyers can take a breath. RBA chief Glen Stevens has indicated a probable continuing pause in rates: "Taking all the available information into account, the board views this setting of monetary policy as appropriate for the near term," he said.

 

Already the pause has had a positive effect, as buyers feel more secure that the RBA is acting in their interest, and in a stable and measured manner. This in turn has lead to a resurgence in confidence and a flurry of buying activity - a win for both buyers and sellers.

 

It’s amazing how influential the media has become in the real estate market - property news has become sensationalised in a way that often does more harm to the market than good, citing out of date statistics and splashing dramatic headlines taken well out of context. We’re happy to report from the frontline that all is well; there are still buyers willing to pay the right price for the right home. In the Lower North Shore, there is no “bubble” on the verge of bursting, simply quality properties and buyers looking to live in this desirable area.

 

For those thinking of selling now is a fantastic time. While there is a common misconception that winter is a bad time to sell, in fact it can be a great time because there are fewer properties on the market. And while other sellers take a break, serious buyers aren’t deterred by cold weather. Now that the RBA has settled down, it’s an opportune window to get on the market and sold by spring. Give me a call today if you would like to discuss further - 0414 666 190.

 

All the best,

Joshua Wygoda

Century 21 Mosman

www.century21mosman.com

 

No comments:

Post a Comment