Industry concerned over rate rise impact
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|Wednesday, 03 November 2010|
The RBA's decision to raise the cash rate by 0.25 per cent has been labelled unnecessary by a real estate industry executive.
According to Ray White Group chairman Brian White, the RBA's decision to raise interest rates by a quarter of a per cent failed to acknowledge the impact recent rate hike speculation has had on housing market interest.
"The anticipation alone of a rate rise has already had a significant impact on the residential property sector, with buyer interest restrained," Mr White said.
"The first spring property results reflect the impact of the expectations home-buyers had around rates, and it appears the RBA have not picked up on the corollary of this."
A decline in buyer confidence was reflected by Ray White's September quarter results - 10,677 properties were settled down ten per cent on the same period last year.
"Buyer expectation that higher rates are just around the corner has resulted in a similar home-buyer response to an actual rate rise," Mr White said.