Hopes for a ‘Christmas pause’ on interest rates were dashed earlier this month with the Reserve Bank gifting Australians with another increase following its last meeting for the year. The RBA on Tuesday 6th of December raised its cash rate 25 base points to reach 3.1%—the highest level it has been in over a decade.
While the interest rate rise is expected to put adverse financial pressure onto millions of Australian households in the lead up to Christmas, it is also expected to add a positive pressure to the real estate market, and the Ray White Catanzariti Family Group is braced to assist their clients in making the most of it.
With interest rate rises being handed down every month for the last 8 months, Australians have reluctantly adapted to what is becoming known as the ‘pattern of the rises’. Starting at .10 base points in April 2022, the cash rate has consistently climbed in increments of .25 and .50., reinforcing the fear that they could continue to rise. Hopes of a deviation from the pattern don’t sound promising; according to a Press Release delivered by RBA Governor, Phil Lowe.
‘The board expects to increase interest rates further over the period ahead, but it is not on a pre-set course,’ he said.
With no clear indication that the bumps will cease anytime soon, it can create a positive effect for active sellers in the market, with many buyers adopting a ‘get in now, before it goes up again’ approach. According to the Mortgage Knowledge Centre, looming uncertainty surrounding interest rate rises can pressure many buyers and investors to accelerate their buying, ensuring they purchase a property and lock in at an interest rate they can manage before they go up again.
‘When interest rates are moving up and have an outlook of a continued increase, we often see buyers flock to the market to get ahead of the game,’ said Peter Catanzariti of the Ray White Catanzariti Family Group.
The uncertainty surrounding interest rates and increased buying pressure, means that for sellers, there is still very strong demand despite the rises. Peter said he and his team hope to encourage locals to take advantage of the demand, and they are dedicated to guiding sellers through the process.
In a dynamic economic market, the team at the Ray White Catanzariti Family Group offer expert advice, guidance and most importantly support, for your real estate needs. Should you require help or advice about finance, lending, or investment, reach out to Conrad Palmer and his friendly team at The Loan Market.