Real estate agents can expect to see their sales volumes track closely to the long term averages over the first six months of 2010.
According to RP Data’s director of research Tim Lawless, the latest rate rise by the Reserve Bank is unlikely to have a dramatic effect on the market, although the true impact of the rise is still yet to be identified through figures.
“Any market response to movements in interest rates tends to be rather delayed,” Mr Lawless told Real Estate Business.
“We are already seeing consumer confidence figures coming down from very high levels and lower levels of confidence will gradually be reflected in the volume sales in the market place, particularly in the more price sensitive segments such as first home buyers and low income households.
“The RP Data Rismark Home Value Index showed that property values continued to increase over the first month of interest rate rises, however we anticipate that growth rates will moderate as data becomes available for November and December.”
However, Mr Lawless said any decrease in sales from price sensitive areas, such as first home buyers, is likely to be balanced by an increase in investor and upgrader activity.
“It is going to be a case of wait and see. Although first home buyers numbers are clearly winding back at the same time investor numbers in the market are increasing. Also, less price sensitive segments of the market including upgraders are becoming increasingly active,” he said.