Yet another RBA rate cut has made the market for home loans in the Rockingham area even more active. However, some people are still playing a dangerous game of waiting for more cuts and trying to “time” the market to their best advantage. According to the experts, it’s time to stop playing the game and start thinking about buying that first home.

This feeling isn’t just prevalent in WA, either. Our neighbours at the Real Estate Institute of South Australia (REISA) and industry experts in Adelaide think that many Australians feel that it’s time to stop waiting for more rate cuts and start the wheels in motion to buy that first home.

According to REISA President Greg Moulton, both sellers and prospective buyers are becoming more active since the recent cut to 2%. The latest cut seems to have crossed a threshold where both buyers and sellers are comfortable enough to “go to market.”

Andrew Friebe, who is the CEO of Harcourts South Australia, reports a surge of investors who are reentering the market due to the lowered rates.

Why South Australia’s Housing Market is Relevant Here

We see a lot of trends across Australia. Many of them are relevant to us and some aren’t. Generally, though, the markets in Australia tend to move in the same direction at the same time. Adelaide and the rest of South Australia haven’t done as well as us in recent years. When their market begins to pick up, we see it as a sign that the Perth market could be ready for a major move.

The purpose of rate drops is to stimulate the economy. The housing and construction markets are a large part of that economy. All rate variations are always felt more in housing than any other sector because, for most of us, our houses are the biggest investments we will ever make.

At this point, we think any further delay in buying a home will cost the homebuyer money because any further interest rate drops will be more than offset by rising home prices.

Call Smartline Rockingham today to learn more: (08) 9527 1800.