Despite three consecutive rate rises by the Reserve Bank, the residential market continues to perform very strongly, Ray White chairman Brian White has said.
Mr White said the real estate had enjoyed one of the strongest springs on record.
“We believe that the specific implementation of interest rate increases pulled back the spring surge which had been expected to lead to a bumper November – generally the biggest month of the year,” Mr White said.
“But comment has been made that the ‘jaw boning’ of the RBA of likely interest rate increases helped create stock that is the fundamental requirement for the active market.
“And buyers were there to take advantage of it. Sellers of homes to first home buyers capitalising on the boosted government grant then reactivated the second home market and this eventually flowed to top end properties.”
Mr White said residential sales for Ray White nationwide had been solid despite the rate hikes, with New South Wales, Victoria and Queensland leading the way.
“We have achieved sales of more than $2 billion in both NSW and Queensland over spring, while Victoria continues to enjoy great success with sales of $1.3 billion,” he said.
In NSW, Ray White’s sales in November totalled $736 million, a 56 per cent improvement on November, 2008, and the second highest ever November result.
“Queensland also reported sales of $736 million during November with 11 of our offices achieving personal best results for the month,” Mr White said.
“In Western Australia our sales for November was more than $127 million, which was 36 per cent up on the November, 2008, result.
“These results show that the market has been coping very well with these rate increases.”