The RBA's decision to keep the cash rate at 3.6 per cent will have an immediate impact on the nation's most expensive housing market, according to one expert, who's expecting buyers, and sellers, in Sydney to spring into action.
abc.net.au/news/impact-of-rba-s-rate-pause-on-sydney-property-prices/102185818Sydney property prices are up again after 10 months of falls, and yesterday's interest rate pause could push them higher, economists say.One expert believes yesterday's pause will have an immediate effect on Sydney's property pricesYesterday's decision by the Reserve Bank of Australia toafter 10 consecutive hikes would have come as welcome news for borrowers.
Sydney led that growth with a 1.4 per cent gain, pushing the city's median property price back above $1 million. While several factors can, and will, affect dwelling values — including, for the purpose of this analysis, the COVID-19 pandemic — it sheds light on how property prices and the RBA's decisions can interact.
Demand is also being driven by increased overseas migration to Sydney, and, a tight rental market encouraging people who can afford to buy into the property market.University of Sydney lecturer Dr Luke Hartigan, a former RBA economist, doesn’t believe one interest rate pause will have big ramifications for Sydney’s property market.
"This will feel much less temporary. People will have confidence of meeting mortgage payments as they will feel assured the interest rate hiking days are over," he said.
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