With the RBA slashing rates by 1% to 4.25% today, the housing market is poised for a significant increase in activity amid improving buying conditions and easing affordability constraints.
Harley Dale, chief economist with the Housing Industry Association, said there are already some tentative signs that inquiries from investors are starting to pick up. "I think many are looking at their sums and are realising that with the amount of interest rate cuts and what remains a very tight rental market where yields are still climbing, it is now a good time to buy. Despite not getting the growth in asset at the moment, it's actually a good time to be investing in property particularly with what's happening with the share markets."
Source: Your Mortgage Magazine 02/12/2008
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