Berry Blog

How does a cut to interest rates help the property market?

The rate cut is likely to help stabilise price drops experienced over the last 30 months, and while this will be a welcome relief for property owners, the most significant impact on the market will be the proposed changes APRA will introduce to lower the serviceability assessment for borrowers.
Combine these two things with the win by the Liberal party on May 18 and healthy auction results and we have a market that is lifting. In fact the experts who predicted that the market would lift toward the end of 2019 have revised their predictions because the market is lifting now.
So what does all this mean? It's a great time to buy a property and many have heeded this advice just in the last two weeks. For sellers, if you are priced right, you will sell. Days on market will reduce and prices may start to lift as confidence and competition in the property market returns.

< Back