First National Real Estate JM Chase’s principal, Jee Chin, supports the RBA’s decision to keep interest rates on hold, saying stability is what is sought during times of ongoing consumer nervousness and tension.
“The market is tightly wound at the moment, and movement of any kind could unsettle confidence, which is why we believe the decision by the RBA was the right one at this time,” Jee Chin said.
“Our agents have reported drops in listing volumes for the second month in a row, which, in part, reflects home owners waiting for selling conditions to improve before they put their properties on the market but also reflects seasonal factors.
“While the market remains slow in much of Australia, decreases in housing availability will begin to place upward pressure on prices as it increases competition, ultimately reducing the number of days it takes to sell a home.”
Jee Chin said home buying opportunities, even with the rates remaining steady, were still plentiful as interest rates are still relatively low and home prices are at their most affordable for quite a number of years.
“This all bodes well for a property market looking for signs of stability and recovery” Jee Chin said.
“Any decreases in rates at this time could have further added to consumer nervousness, which is still suffering from uncertainty around global economies and impacts of rising living costs, especially with the advent of the carbon tax.
“At the same time, an increase now could result in reduced affordability, something first home buyers in particular can ill-afford at a time when some of the government assistance schemes are being cut back or dropped altogether.
Jee Chin said he encouraged anyone looking to purchase a home at the moment to negotiate.
“All the Big 4 banks and other mortgage lenders are on record as saying they are willing to discuss rates with home buyers in order to retain their share of the market, so buyers are in a real position of power to make them deliver on their statement,” Jee Chin said.
“A calm approach is exactly what is needed right now to allow the property market to catch its breath and stabilise activity, so it can prepare for the next wave of influencing factors. This falls right into the hands of home buyers who should be able to secure the best deals they have for many years.”
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