Ray White posted its best monthly sales result since March, booking $2.4 billion in transactions in November partly as a result of renewed consumer confidence stemming from what was the first of two interest rate cuts earlier last month.
“The key driver in the interest rate cut was not the actual amount itself,” said Brian White, joint chairman of Ray White Group.
“The signal that was sent from the Australian Reserve Bank [was] to ‘forget about future interest rate increases for the foreseeable future. If any more re-setting of official interest rates is to occur, it will be on the down side’.”
Mr White also pointed to an improving Gold Coast market – which saw unconditional sales in excess of $100 million for the month, almost twice the result for recent months – and solid results in Sydney and Melbourne, the latter of which “was stronger than it has been for a long time.”
Mr White said while overall “activity levels” improved and there were more open for inspection attendees, “it wasn’t all plain sailing.”
“Anecdotal stories of young people putting off purchasing homes through ‘the crisis in Europe’ surprised the writer with their frequency,” he said in his monthly White Paper column. “It’s hard to remember a time when Europe would so dominate the behavioural patterns of Australians. Such is the remarkable uniqueness of our times.”
Mr White added that the company’s mortgage broker division, Loan Market, also posted strong sales last month, “reflecting the powerful role that a dedicated mortgage professional brings to the purchasing - selling process.
He also said the company’s project division reported a good result in November following an Asian marketing tour.
“Over 20 sales were made to Indonesian purchasers from the Top Ryde City project in Sydney,” he said. “This came after a well planned mobilization of our client base from our 100 office network in Indonesia.”