Logan residents doing it tough may have been granted a month of relief, with the RBA last week announcing a pause on the cash rate.
Real Estate Institute of Queensland (REIQ) said this month’s hold was a “sensible decision given mixed economic signals”.
REIQ’s chief operating officer, Dean Milton, said the pause would serve as a nice surprise to business owners, mortgage holders, aspiring homeowners, and renters.
“In our view, there were enough economic factors at play to warrant a stop or at least a pause to the steep tightening cycle, so this comes as welcome news,” Mr Milton said.
“With 12 rises and only two pauses since May last year, pressure continues to mount on businesses, the economy is weakening, and households with little savings left are wondering what else they can scrape by without.
He said small businesses and building developments had taken a massive hit from consistent rate-rises.
“Small businesses are also coming under pressure with a raft of cost increases this financial year including electricity prices going up by 25% across the state, and the additional Superannuation Guarantee of 0.5%,” Mr Milton said.
“There has been a 30% decline in loans for new builds during the last 12 months of the hiking cycle which are now at are their lowest levels since the end of the mining boom a decade ago.
“With business insolvencies on the rise, this is a welcome pause to give developers a chance to catch up and restore cash flow.”
