St Marys market buoyed by slower rate rises


April 29 2010

St Marys market buoyed by slower rate rises

 


The Reserve Bank of Australia (RBA) is expected to slow interest rate rises in a move that will continue to push the St Mary's property market, according to real estate experts.

RBA assistant governor Guy Debelle said the RBA was in the process of moving its cash rate, “back to somewhere around average levels, which is not far away from where we are at the moment,”. This has prompted economists to speculate that the bank might be slowing its rapid-fire monetary policy.

Raine & Horne St Marys principal Vince Turner said previous rates rises had not yet affected the market, and he predicted a further upturn in prices this year.

“Prices have gone through the roof and so have rents because there is such a shortage of stock,” Mr Turner said.

“I don’t think interest rates are going to stop anything. Interest rates are a barometer and if they go up, it shows people are confident.

“Demand will certainly continue to be strong because of the lack of available properties coming on to the market,” he said.

Raine & Horne CEO Angus Raine said the NSW/ACT property market would be boosted by a pause in interest rates rises.

“Prices will continue to go from strength to strength. I predict price rises of 10-15% across many NSW markets, fuelled by slowing rate rises, increased migration and housing shortfalls," Mr Raine said.

“Now is the time for vendors to sell, because buyers are battling it out over fewer properties,” he said.

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide. Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

For more media information contact Vincent Turner, Raine & Horne St Marys on 0427 623 566 or (02) 9623 5666.