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Compared to 2022, agents could see a very different winter and spring this year, with new data indicating that the real estate market is set to get busy in the coming months.
Angus Raine, the executive chairman of Raine & Horne, said that the central bank’s call to leave the official cash rate at 3.6 per cent at the end of its April policy meeting came as an “early easter present” for property owners.
“The RBA started increasing the cash rate in May 2022, and today’s announcement is fantastic and gives homeowners with mortgages some respite,” Mr Raine said.
He also noted that the interest rate hold coincided with other data that indicates the market may have bottomed out, as the latest CoreLogic data showed the country’s home values grew for the first time in 10 months.
CoreLogic’s latest national Home Value Index (HVI) recorded its first month-on-month rise since April 2022, rising by 0.6 per cent in March.
“The decision by the RBA, along with news that property values are returning to form once again puts the focus back on our favourite asset class,” Mr Raine commented.
In addition to the rate hike pause and property values returning to growth, the executive cited other data which he believes portends good sale results for the upcoming winter and spring seasons.
He noted that the latest April Raine & Horne Monthly Property Report showed appraisals and listings have already increased by 30 per cent and 43 per cent, respectively, since January.
Meanwhile, the number of groups attending open-for-inspections (OFIs) is also up by 23 per cent during the same period.
“Even before the RBA paused rates, homebuyers were already active, and this bodes well for winter and spring markets.
“The property drums are beating now that interest rate hikes have stalled, appraisals are up, and buyers are back in numbers at open for inspections,” he concluded.
