Interest rate means 'property clock' moves in favour of sellers

The interest rate cut by the RBA signals that the property clock in Western Australia will soon move in favour of property sellers according to David Hobbs, CEO of Professionals Real Estate Group.
Mr Hobbs said that the property market traditionally followed the cycle of a clock with 12 o’clock being the peak of the market and 6 o’clock being the bottom of the market. “With this interest rate cut, the property market in WA will pass six o’clock and gradually start heading back to 12 o’clock.
“The last time the property clock was at 12 o’clock was some four or five years ago and over the next year it should begin to gradually move back to that position.
“Falling interest rates are the initial driver in the recovering of the property market. However, Western Australia has every other key driver in place, including a strong economy, strong population growth along with strong wages and employment growth.
“Professionals is predicting that this interest cut will encourage many first home buyers and property investors to target lower priced suburbs in Perth where the median house price is below $400,000. These affordable housing areas include the south-eastern and south-western corridors.
“Over a period of time, this greater activity at the lower end of the market will have a ripple effect to the second and third home buyers.
“The message for anyone considering buying a first home or property investment, is to act quickly while stock levels are high and the property clock is still around six o’clock,” he said.
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