Election date just as important as rate cut – Laing + Simmons

While yesterday’s decision by the RBA to lower interest rates further is a shot in the arm for the real estate market, the fact an election date has finally been set is just as important, according to Laing+Simmons General Manager Leanne Pilkington.

“The reduction in interest rates combined with the certainty we now have in terms of the election date should provide buyers and vendors with the confidence they require to proceed with their real estate plans,” Ms Pilkington said.

“The clarity around the election removes some of the uncertainty in the market, a market in which there is already of dearth of available stock.

“Vendors who may have been holding their properties back can now proceed to develop marketing campaigns.

“The fundamentals of strong demand and low supply remain constant and motivated vendors should consider listing their properties sooner rather than later to avoid the likely onset of competition that coincides with the spring selling period.

“With interest rates hitting another new historical low, the current economic environment is ideal on many levels for buyers with stable income to obtain finance at an attractive rate to secure a property.

“As ever, much depends on the willingness of the banks to follow the Reserve Bank’s lead. In recent times most major banks have reduced their rates so the signs are encouraging.

“Nevertheless, agents need to work harder in the current market cycle. The fact buyers are ready and willing to move is positive, however there is only so much that can be achieved in a transactional sense with limited stock available.

“The best agents will already be communicating with their vendor clients as to the opportunities available, in the lead up to the election and afterwards, and the strategies to optimise results,” Ms Pilkington said.

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