The Reserve Bank’s recent decision to cut interest rates by a quarter percent along with strong indications of more cuts to follow in the near future should be sounding alarm bells for prospective home buyers and upgraders according to industry leader, Geoff Baldwin, managing director of the RE/MAX WA franchise group.
Mr Baldwin warned that the second rate cut may well be the catalyst to motivate the many hundreds of buyers who have been holding off waiting for signs of the market strengthening.
“Since rates were cut in early November we have seen a noticeable upswing in buyer activity and this second downward adjustment has added more positive fuel to the fire increasing buyer activity and creating more competition in the market which will reduce stock and put upward pressure on prices”, Mr Baldwin said.
“This has been a prolonged down cycle however it is part of a cycle and history shows that down cycles are always followed by a period of recovery and usually a swift bounce in prices.
“People who have been holding off are well advised to get into the market sooner rather than later to take advantage of the volume of choice that still exists along with the lowest prices in the past 5 years.
“We are already seeing a return of multiple offers on properties which is another indication that good listings are being snapped up quickly and that this historically wide window of opportunity for buyers is beginning to close” Mr Baldwin said.