The Real Estate Institute of Western Australia says today's interest rate cut of 1 per cent is very welcome and should help kick start WA's sluggish housing market.
REIWA President Rob Druitt said the state's housing downturn was partly due to buyer uncertainty around interest rates, but this was now likely to change.
"The Reserve Bank has given homebuyers an early Christmas present," Mr Druitt said.
"With our state's population growing at around 1,000 people per week, there is a lot of pent up demand in the system from people wanting to buy but waiting for the right signals to move.
"Today's RBA decision may well mark a significant turning point for many people currently in that hesitant position," Mr Druitt said.
REIWA data currently show there are around 17,300 properties for sale in the metropolitan area and that median prices have dropped by around 10 per cent since January.
"Now that house prices have corrected after the boom, interest rates have fallen and the number of homes on the market has swelled, it's reasonable to expect that many first time and upgrade buyers will emerge during the spring to start buying up the excess housing stock over the New Year," Mr Druitt said.
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