Homebuyers who are sitting on their hands are expected to make their move during the typically slower winter months now that interest rates appear to be stable, according to the head of one national franchise.
Deputy chairman of LJ Hooker L. Janusz Hooker said the winter market will be buzzing following yesterday’s interest rate announcement.
“There is still a chronic shortage of housing in areas such as Sydney, and with this simple supply and demand imbalance continuing, it’s hard to see how the bottom can drop out of the market,” Mr Hooker said.
Mr Hooker said it could be as far away as December before the Reserve Bank increases interest rates, which will stifle property growth, even with lower than expected inflation.
“Sensible buyers are factoring in future rate increases when doing their calculations but I also think there is an acceptance that the rate of growth the market has been enjoying will slow down,” Mr Hooker said.
With prices reaching a premium in markets such as Sydney, it’s likely investors will start to turn their attention to sunny Queensland during the cooler months, according to Mr Hooker.
“Investors are still active but in Sydney they can’t earn as much rent because prices have risen, so they will start seeking other areas that are yet to experience that same rate of growth,” he said.