Port Stephens Property market

Reserve Banks Effect On Port Stephens Real EstateWhat Does No Interest Rate Drop In September Really Mean?

As you are well aware by now the Reserve bank decided to keep the cash rate on hold for the month of September:

“The Reserve Bank today kept its cash rate at 4.25 per cent, defying expectations of a third rate cut in a row – just three of 27 economists polled by Bloomberg predicted the result.” SMH

This decision is right at the start of spring time selling and with the announcement coming on the back of a suggestion that the rates will probably remain on hold till the end of the year, the big question is:

“How will this decision effect spring time Real Estate markets?”

I believe there are 2 answers to this question. Each with there own question. Confused? Your with the rest of the best economics in the country. But lets start with what happened immediately.

The Sydney morning Herald reported that the Aussie Dollar rocketed on the news, jumping about one US cent to $US1.081 – a six-month high – within minutes of the announcement before easing back to $US1.078.

in recent trading.

So if this continues it can’t be good for retail, and if retail is not good, small business is not good, and if small business is not good, the Real estate is affected. The big question is, will the dollar keep rising leading to Christmas?

So whats the good news?

Here’s why I believe the announcement was a good decision for the Port Stephens Property Market:

  • Real Estate markets are about confidence  and at the start of Spring Selling, it gives confidence to the market that things are going well in Australia
  • Supply is down by about 36% and inquiry up 6.5% so the announcment has come at a good time in the market for people deciding if they put their properties on the market(Real estate is about supply and demand)
  • And finally it leaves plenty of room leading up to Christmas for a drop if needed.

And the question this leads to is “Will the supply rise dramatically in Spring or will the demand increase as supply increases?”

We are extremely short of properties in the $300,000 to $550,000 range and literally hundreds of buyers. If you know someone thinking of selling tell them to give me a call on 0402348080.

Chris Hasson discusses Rates and Port Stephens Property

Question of the day: If you didn’t have to advertise or put your property on the market would you choose to sell?

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