Potential sellers & buyers across all real estate sectors will be keeping a close eye on the RBA in the next few months amid speculation rising property prices & a post-COVID19 economic bounce back could see the Reserve Bank raise rates for the first time in 11 years.
One year ago, the RBA lowered it’s official rate to 0.1% and with the board meeting today, the RBA is under pressure to explain when it expects to raise it. Whilst no increase is imminent, markets are starting to anticipate that the bank will bring forward the rise from the expected date of 2024.
“If they don’t go with a date, then my fear would be that the market will interpret that as a signal they could move as soon as early next year,” David Plank, ANZ’s head of Australian economics said.
At stake is the fate of interest rates for those with mortgages but also those seeking to enter a market where house prices continue to rise at an annual rate of more than 20%, new figures out today show.
The shift in thought on the date of the rates rise indicates a likely increase of new properties hitting the market in the next couple of months, with vendors looking to capitalize so as to not miss out on the high amount of buyers currently looking for commercial/industrial property which is likely to taper off should the RBA raise the rates.