Pause on rates bodes well for winter and spring sales

The decision today by the Reserve Bank to leave the official cash rate at 3.6% not only provides homeowners with an early easter present but also augurs well for winter and spring real estate markets, said Angus Raine, Executive Chairman Raine & Horne. 

The RBA’s decision to press the pause button follows hot on the heels of CoreLogic’s latest national Home Value Index (HVI), which recorded the first month-on-month rise since April 2022, up 0.6% in March. 

“The RBA started increasing the cash rate in May 2022, and today’s announcement is fantastic and gives homeowners with mortgages some respite,” Angus said.  

“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.”

Appraisals, listings and OFIs already up 

According to the April Raine & Horne Monthly Property Report, appraisals (up 30%) and listings (43%) have already increased since January, while the number of groups attending open-for-inspections (OFIs) is also up by 23%. 

“Even before the RBA paused rates, homebuyers were already active, and this bodes well for winter and spring markets,” Angus said. 

“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.” 

Craig Betalli, Senior Finance Specialist from Our Broker, agreed that the cash rate pause would give borrowers welcome relief. 

“The rate pause will provide more certainty for borrowers as it is now possible interest rates won’t change for a while. 

“This now makes it a great time to get a home loan preapproval with the assistance of your brokers as a first step to buying property. 

“Also, those facing higher rates after coming off lower fixed rates and who were worried about their ability to meet their monthly mortgage repayments now might be in a better position to refinance with the assistance of their broker to secure a better deal from their lender.”

Craig added, “Borrowers should keep an eye on fixed rates with the expectation that they may start to come down as the effects of the ten straight interest rate hikes begin to flow through the economy.

“So, our advice is not to fix your rate just yet and reach out to your broker for the best variable deal available.”