Rate cuts show property market heading to positive territory

The decision by the Reserve Bank of Australia to reduce the cash rate by 25 basis points to 2.5% on Tuesday is more good news for the Queensland market.

The rate announcement adds to positive data also released today which shows that the Queensland property market is on the road to recovery.

According to the Australian Bureau of Statistics (ABS) house price index, the Brisbane index grew 1.9% in the three months to June.

ABS housing and lending finance data also shows that the numbers of owner-occupiers and investors in the market continues to increase.

Tuesday’s rate cut adds to a growing number of indicators that show our property market is well and truly heading into positive territory.

We have been witnessing improving sales activity and confidence levels for about six to 12 months now, so Tuesday’s rate cut will continue to provide more good news for our market.

All of the signs signal that this year’s spring selling season will be one of the best for quite some time especially once the Federal Election is behind us.

We all hope that the election produces a clear majority which will have a positive and stabilising effect on our economy and correspondingly on our property market.

Anton Kardash is CEO of the Real Estate Institute of Queensland.

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