Rate Cuts Adds A Boost To Market Expectations
The Age
Tuesday May 27, 1997
the agent: Phillip Kingston
Gary Peer & Associates
"PUT on your roller skates and fasten your seatbelts because if you thought the market was strong up until now, just wait for the impact of the latest interest-rate cut," auctioneer Phillip Kingston (right) said.
No one was really expecting the cut and it is only going to help people have more confidence.
"If I was a vendor I would be taking advantage of the rate cut and the shortage of houses and would be selling in June, July, August rather than waiting.
"If I was a potential buyer and didn't already have a foothold in the market, I would be getting even more anxious to get into the market."
The buyers: Paul and Vicki Miller
27 Seymour Grove, Camberwell
PAUL and Vicki Miller (above) had been looking for a property to buy for the past 18 months and, last weekend, settled for a renovated four-bedroom Victorian.
Mr Miller said the interest-rate drop had been good news.
"I suppose it just gives you a bit more confidence and I have been hearing talk of 40 per cent rises over the next four years, particularly in established areas."
The Miller's negotiated a price of $505,000 after the house was passed in at the auction for $490,000.
The seller: Mary Herridge
19 Larch Street, Caulfield
MRS MARY (Billie) Herridge was delighted on the weekend when her Caulfield home sold for $223,000.
Her daughter, Mrs Jill Page, said the family had been watching the market and it was the right time to sell. "The timing of Friday's interest-rate cut was just fantastic," she said after the sale of their house, which had a $200,000 reserve.
The agent: Marcus Peters
Wilson Pride Ellison Hearnden
AUCTIONEER Marcus Peters (below), from Wilson Pride Ellison Hearnden, said the rate cut and the shortage of houses for sale would hype up the market.
Mr Peters said that since Friday's announcement of the rate drop, he had been on the phone with vendors expecting higher prices, and purchasers being keener now to buy before auction. "They sense there is pep in the marketplace."
He said lenders were "being knocked over" with people saying they want to borrow now. "The lenders are feeling the demand."
AVERAGE HOUSING RATES
Date Ave Var Movement
Housing
Rate
Jan-77 9.50 -
Jan-78 9.63 -0.13
Jan-79 9.13 -0.50
Mar-80 9.63 0.50
Apr-80 9.88 0.25
Jul-80 10.25 0.37
Dec-80 11.00 0.75
Jan-81 11.50 0.50
Aug-81 12.00 0.50
Oct-81 12.50 0.50
Mar-82 13.00 0.50
Apr-82 13.50 0.50
Feb-83 12.50 -1.00
Sep-83 12.00 -0.50
Jan-84 11.50 -0.50
Apr-85 12.00 0.50
Jul-85 12.50 0.50
Sep-85 13.00 0.50
Oct-85 13.50 0.50
Apr-86 15.50 2.00
Aug-87 15.00 -0.50
Oct-87 14.50 -0.50
Nov-87 14.00 -0.50
Feb-88 13.50 -0.50
Jul-88 14.50 1.00
Dec-88 15.00 0.50
Date Ave Var Movement
Housing
Rate
Feb-89 15.50 0.50
Mar-89 16.00 0.50
Jun-89 17.00 1.00
Apr-90 16.50 -0.50
Sep-90 16.25 -0.25
Oct-90 16.00 -0.25
Nov-90 15.50 -0.50
Dec-90 15.00 -0.50
Jan-91 14.50 -0.50
May-91 14.00 -0.50
Jun-91 13.00 -1.00
Oct-91 12.50 -0.50
Dec-91 12.00 -0.50
Feb-92 11.00 -1.00
Jun-92 10.50 -0.50
Aug-92 10.00 -0.50
May-93 9.50 -0.50
Sep-93 8.75 -0.75
Sep-94 9.50 0.75
Nov-94 9.55 0.05
Dec-94 10.50 0.95
Jun-96 9.75 -0.75
Aug-96 9.25 -0.50
Nov-96 8.75 -0.50
Dec-96 8.25 -0.50
Mar-97 7.55 -0.70
Information supplied by Market faxts
© 1997 The Age