Help fund relief efforts for the Australian Bushfires #beyondthebricks
Support Now
News

The interest rate cut of 0.25 per cent could “renew faith” in struggling property market

By Rick Schafer

Source: Quest Community Papers

Today’s interest rate drop could fuel a first home buyer surge early next year and pump the lifeblood back into the anaemic industry, REIQ CEO Dan Molloy says.

“I generally think first home buyers hold the key to stimulating the market … and I think we are seeing the signs of first home owner interest picking up,” he said.

“A rates drop further renews that faith.”

In the past few months he said the property price slump had also helped to build that faith, which economic fears had shaken over the last 12 months.

“First home owners peaked at about 28 per cent two years ago before they dropped.

“I think (the rates drop) will indicate a slightly quicker return to confidence in the new year.”

Today, the Reserve Bank of Australia (RBA) cut the official cash interest rate from 4.75 per cent to 4.5 per cent.

Loan Market chief operating officer Dean Rushton said the cut should save someone with an average mortgage of $300,000 around $50 a month.

“The extra savings will help many families struggling with the increased cost of living and should result in retailers enjoying a better Christmas than they may have envisaged a few months ago,” he said.

Up to Date

Latest News

  • Five fantastic views to soack up this summer

    FIVE FANTASTIC VIEWS TO SOAK UP THIS SUMMER Summer has finally arrived, and with it so too have the days of sitting back and relaxing outdoors. Where better to do so than on a balcony with fantastic views? Settle in and soak up these astounding outdoor set-ups that have us … Read more

    Read Full Post

  • How to buy your first home… from a first-home buyer

    Except for having your children come into the world (or fur baby in my case), there really are few feelings of exhilaration, joy and pride than when your first house purchase settles. A leap in the air is an understatement and picking up the keys is just as wonderful. But … Read more

    Read Full Post