Real Estate Institute of South Australia president Greg Moulton, along with other industry leaders in Adelaide, has commended the RBA’s cut to 2%. They believe this will get more potential homeowners to be active in the market.
“Every cent counts in that market and the opportunity for them to purchase a property is increased every time there is a rate cut because they can afford to borrow more and the repayments, if they’ve already got a property, become less so they can afford to pay off more of the capital,” Moulton was quoted as saying by News.com.au.
“There have been some people, who, because of the hype since February, have held off putting their property onto the market and there have been some purchasers who have opted to wait for another cut. There are no more excuses now and we’ll be expecting an increase in stock as a result.”
Moulton’s optimism over the latest rate cut is shared by Harcourts South Australia chief executive officer Andrew Friebe. He believes the move will boost the housing market, “particularly leading into Adelaide’s wetter months”.
“This will certainly fuel on first homebuyer activity and spur on investors chasing returns — as the rates come down their returns go up because their repayments are less,” said Friebe.
“We’re certainly seeing a lot of investors coming back into the market from interstate, especially developers who see Adelaide as really good buying.”
Meanwhile, Housing Industry Association South Australia regional executive director Robert Harding said he hoped RBA’s announcement would boost the “sluggish” Adelaide building market.
“The HIA welcomes the decision to cut interest rates particularly due to the fact that the South Australian building industry is struggling, as are other parts of Australia, and the RBA ... has looked beyond what is happening in Sydney to other parts of Australia,” Harding said.
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