Flat cash rate drives spring sales

Flat cash rate drives spring sales

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A shortage of listings and strong demand by both owner occupiers and investors could make the perfect summer selling season.

A combination of stable interest rates, a significant spike in appraisals over winter and the coming of spring may combine to create the busiest selling season of the year.

Following the Reserve Bank of Australia’s decision to keep interest rates unchanged, agents believe a direct result of the continued low interest rates, high consumer confidence and backlog of properties already appraised will continue to drive the current housing cycle.

LJ Hooker chief executive officer Grant Harrod said the "historic" low cash rate should continue to fuel the market.

He said there has been no traditional lull because there is still a shortage of listings and strong demand from owner occupiers and investors.

"We are very optimistic that this will mean more property on the market over spring, this should help alleviate the pent-up demand that has built up over the past six months," Mr Harrod said.

The good news for house hunters is the stable domestic economy, which according to LJ Hooker national research manager Mathew Tiller, makes potential buyers comfortable that mortgage repayments will remain affordable and keep investor demand strong.

"The domestic economy has thrown up little surprises that might prompt any change, which is good news for house hunters," Mr Tiller said.

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