The Reserve Bank of Australia has lowered the cash rate by 0.25 points for the third time this year – but what does this mean for Logan’s property market?
Interest rates now sit at 3.6%, the lowest in two years.
Three local agents have agreed cutting interest rates is positive for mortgage holders still feeling the cost-of-living pinch.
Brown Plains Real Estate principal Neil Giles said the rate cut would put more money in the pockets of mortgage holders, which would make a big difference to households.
Mr Giles said the cut could also be good news for those in the market to buy, who will now be able to borrow money from the banks, charging the reduced 3.6% interest rate.
“Their borrowing capacity could go up, so it could actually aid buyers. Where they could only afford X before, they could be able to go to Y,” Mr Giles said.
“I know that may be pushing their boundaries, but it may allow them to actually get into the property market.”
The price of properties in Logan and the speed at which they are bought is unlikely to change as the lack of housing supply continues to drive up selling prices, he said.
“The last three houses I’ve sold recently have all been sold at the first open home, at the first inspection.”
Principal agent with Ray White Marsden, Avi Khan, said interest from buyers has been consistently high over the past year and the rate cut could ensure that continued.
“We’ve already been seeing strong buyer enquiry, and a cut in the cash rate will ease borrowing costs for both first home buyers and upgraders,” Mr Khan said.
“For a market like Logan, where affordability has been a key driver, even a modest reduction in repayments can tip the scales for buyers who have been sitting on the fence.
“Lower interest rates will make holding costs more manageable, which could encourage more investor activity and help relieve some pressure in the rental market.”
LJ Hooker principal agent Christie Smith said the rate cut could mean homeowners would hang onto their properties for longer and be less inclined to sell.
“I think homeowners are more likely to be able to realistically hold on to properties a little bit longer where they may have been finding some financial drain or hardship from mortgage rates.”
All three agents say the RBA rate cut will increase property market activity, particularly from people looking to buy a property – but only marginally.
“Buyer demand for a long time now has been very, very high,” Ms Smith said.
“We saw more activity around the changes to the first home buyer stamp duty exemptions and changes there.
“The rate cuts do vary some people’s capability and budgets, but a lot of the time, people are already in the market trying to secure properties.”
