Brighter Buying

Market update: Cash rate still on hold + a steep rise in buyer activity

by Justin Watt, CEO 11 June 2020

For the month of June the RBA held the cash rate at 0.25%, no surprises here...

The low cash rate is helping to keep the housing market on it’s feet a conditions and keep borrowing costs low.

The average owner occupier mortgage rates are averaging less than 3 per cent and the most competitive rates are close to the 2% mark.

Many commentators are asking could we see a negative cash rate? At this stage the RBA has stated it would not raise the cash rate until progress had been made towards full employment and inflation was in the 2-3% band. If we were to go to the territory of negative rates it would speed up economic recovery.

Buyer activity is rising steeply as reported by realestate.com.au in the REA Insights Weekly Demand Index.

The new data is showing a significant jump in high-intent buyer activity on their website and app and tracks that activity over time.

The characteristics of serious buyer activity includes but is not limited to; the number of visits to a listing, looking at the photos for a listing multiple times, saving the property, sharing the property and/or making an enquiry with the agent.

Since the recent low related to COVID-19 serious buyer activity has more than doubled in most states and territories. Queensland recorded a 117.1% increase.

According to the report one of the likely drivers of such high volumes of serious buyer activity is the fact that there are so few properties listed for sale.

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