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REIWA Welcomes RBA 'Confidence Call'
Tuesday, March 03, 2009
The Real Estate Institute of Western Australia described today’s decision by the Reserve Bank not to lower interest rates further, as a welcome sign of confidence.
REIWA President Rob Druitt said the sluggish housing market in WA was unlikely to be boosted by any further interest rates cuts.
Mr Druitt said most potential buyers in WA were looking for reassurance in the state’s economic health, not cheaper loans.
“While the series of rate cuts over the last year have been a tremendous boost for first home buyers, that finite section of the market is now pretty much exhausted.
“Where we need to see the property market improving is with upgrade buyers, those people thinking of second homes generally valued over $500,000.
“These buyers are looking for economic stability to give them the confidence to step back into the market. Hopefully, today’s RBA announcement will help build that confidence,” Mr Druitt said.
Mr Druitt also said the stabilisation of interest rates indicated that the RBA is unlikely to drop rates further in the short term, so potential buyers might now be more motivated to act.
“If some buyers have been waiting in the hope that rates may come down a little lower, today’s announcement may put an end to that cautiousness and release those buyers who have been holding back,” Mr Druitt said.
- REIWA