The cash rate hike comes as part of the RBA’s efforts to bring inflation towards its target rate of two to three per cent.
According to Realmark Licensee John Percudani, the latest cash rate rise is unlikely to discourage strong buyer demand.
“The major factors driving the residential property market are strong immigration and employment rates, which are currently fuelling very high demand,” he said. “This is certainly what we’re witnessing in real time at Realmark, with most properties across all market segments receiving multiple strong offers on a daily basis.
“The demand for housing in WA doesn’t appear set to change in the short term and is unlikely to be affected by the latest rate rise.”
Mr Percudani said sellers in the Perth metropolitan area might also be affected by the rate increase.
“Property prices are currently increasing at a record rate in this area which, to me, suggests the cash rate could impact on the rate of price growth despite the elevated demand,” he said.
“Sellers should therefore be aware of buyer price sensitivity driven by affordability challenges and loan capacity impacts.”
For the full article, see the Saturday 18 November edition of The West Real Estate.