Even many of the commentators were surprised this week by the RBA announcement to reduce interest rates by 0.25%. Further cuts have been expected but few thought the move would come so early in the year. So what does a rate cut mean for those looking to buy or sell property?
The first point to make in relation to property is lower interest rates means cheaper finance for those seeking to purchase. It doesn’t make the properties cheaper but it does make repayments more affordable which can open the door for more potential buyers to enter the market and increase demand.