How can an interest rate rise be positive news?

While the inevitable rise in the RBA cash rate by 25 basis points to 3.25 per cent on Tuesday, 6th October 2009, may be seen by many as negative due to increased repayments, it is in fact positive news. It is the clearest indication to date that the effect of the global financial crisis on the Australian marketplace is coming to an end. In turn, we will see real estate prices, which have been in the doldrums for some years now, rise as confidence returns to the market. The buyers market that we have all been experiencing is going to gradually become a sellers market again. The recent 50% rise in the stock market from its lows in March of this year will also be making our customers feel much more comfortable.

But the return of confidence to the market is not the only reason that the property market is set for an upward cycle. Recently a new body, The National Housing Supply Council revealed the gap, that is, shortage of residential property, in Australia will exceed 400,000 properties by 2028. Over the five years to 2013 the shortage is expected to have already risen to over 200,000 properties. The Reserve Bank, as reported in The Australian on Wednesday 30th September 2009, supports this evidence, saying that house prices are ready to explode as demand exceeds supply.

Those of us in real-estate understand better than most that soon property prices will begin to rise again and it will be almost impossible to secure additional incentives from developers. Don't miss out, we still have a great selection of properties available for you to choose from.