A range of property pundits believe Sydney’s property market will continue to boom, despite the Reserve Bank of Australia’s (RBA) decision this week to keep the cash rate at 2.25%.
February figures from CoreLogic RP Data show median prices for dwellings in Sydney increased by 1.4% in January, to a $680,000 median.
One of the experts who believes in the continuous rise of Sydney’s property market is SQM Research property analyst Louis Christopher. He claimed “it would take more than interest rates remaining the same to halt the escalating expense of buying a Sydney home”.
Christopher noted that clearance rates in Sydney had been soaring over the past few weeks, as it appeared that homebuyers were anticipating a rate cut in March.
Harley Dale, a Housing Industry Australia economist, echoed Christopher’s claims, adding that the RBA’s choice to keep the rate steady would do little to change Sydney’s housing values.
Dale said “hordes of people” won’t be discouraged to find their dream homes or investments with a 2.25% RBA cash rate. He added that there remained significant interest from overseas.
"Everyone's engaging the Sydney property market, that's why there's so much momentum," he said.
Meanwhile, for CoreLogic RP Data senior research analyst Cameron Kusher, lower interest rates from February were enough to renew the auction market’s strength.
"Whilst our previous view was that growth in home values across Sydney and Melbourne would continue to moderate as they had over the second half of 2014, it looks for at least the next couple of months value growth may actually ramp-up," he said.