The RBA announced, yesterday, the 5th of February that the cash rate would remain unchanged at three per cent.
This is on the back of the four rate cuts that were made in 2012, which saw the cash rate move from 4.25 per cent down to the current three per cent, a market low not seen since April, 2009.
Ray White Maroochydore Principal, Dan Sowden, commented that although there was no change to interest rates this month, the local property market is still experiencing the benefits of four rate cuts throughout 2012..
“In 2012, investors basically deserted the market, representing less than just 10% of our sales. Today investors are returning, representing almost 60% of all buyer enquiry.”
“We believe investors are drawn by the combination of historically low borrowing rates and market high rental returns, creating positive cash flow returns, something we haven’t seen since 2002”.
“Owner occupier activity has remained strong, particularly in the sub $400,000 market, however in terms of a market correction, it will be the influx of investors creating further demand that will drive property prices into a new direction”
This improved economic outlook has led many leading economists to predict a further rate cut would not be seen until the second quarter of 2013.
One thing is clear, the property market is certainly returning to favour.