Thursday, November 10th, 2011 - Toop & Toop Real Estate
The big question circling real estate circles for the past week has been how housing market transactions will be impacted after last Tuesday saw interest rates cut for the first time in 31 months.

The rate was reduced by 25 basis points and the average standard variable mortgage rate fell to 7.55%.

Although this rate cut is only a slight move, RP Data believes this lower interest rate will help to improve housing affordability.

"It's (the rate cut) likely to improve consumer confidence," said Elise Partington of Toop & Toop Real Estate, "currently buyer activity around the nation is quite low and reminiscent of sale levels during the GFC."

In Adelaide sales volumes are down 17.3% compared to the average five years ago.

However according to Anthony Toop, Managing Director of Toop & Toop Real Estate, if you checked out any of Toop & Toop's auctions last weekend, you'd be forgiven for thinking that confidence had returned to buyers.

“Well if last weekend’s (auction) results are any indication as to what’s going on with the reduction in the mortgage rates, we had a party!"

"We had 7 out of 8 on the weekend – it was fantastic,” said Mr Toop.

As these volumes correlate with consumer sentiment levels, we could see a rise shortly as sentiment levels have improved in recent months and now it’s expected they’ll continue to do.

"Comparing this occurrence to the last time interest rates fell, experts don’t anticipate mortgage rates will fall as low as 5.75%," said Miss Partington. "Nor do they believe this round of interest rate cuts will result in the same strong level of property value growth," she said.

And if the low three year fixed mortgage rate of 6.6% is anything to go by, the banks believe interest rates will fall further.

For more of the hottest real estate issues, see Episode 104 of Toop.TV. Here's what else you'll find:

- New REISA President Greg Moulton live on the show and discusses his newest role

- See inside some of South Australia's very finest homes, including 33 Marine Parade Seacliff and 21 Westall Street Hyde Park

- For the first time, see inside one of Adelaide's most exquisite executive rentals in Joslin

- View the properties that have sold in the past week

See Anthony's Weekly Market Wrap-Up - filmed Wednesday 9 November - for the very latest in all things real estate.

View the complete episode and previous episodes at www.toop.tv - and look out for Episode 105 live on Wednesday afternoon, 16 November 2011.

Contact Profile

Toop & Toop Real Estate


South Australia’s largest independent residential real estate agency and the most highly awarded in the nation was founded by Anthony Toop. It has become a national icon in marketing and selling in the residential real estate industry having won National Real Estate Agency of the Year in 2007 and is the only real estate agency in the industry’s REISA Hall of Fame. Toop&Toop is also the only real estate agency in the Family Business Association Hall of Fame as an iconic business in South Australia. Founded by Anthony in 1985 has won virtually every major state and national business award since 1993 - and has received recognition both nationally and internationally for achievements in business excellence. In April 2009 Anthony was recognized nationally by the Real Estate Institute of Australia by receiving the nations “Community Service Award” for work done with charities and with the Community. He also received the Young Presidents Organization (YPO) Long Life Leadership regional recognition in December 2008 the “Legacy Honour 2008”.http://www.toop.com.au

Contacts

Anthony Toop
phone: 08 8266 8887
mobile: 0418 824 188
email: [email protected]
website: http://www.toop.com.au

Anthony Toop
P: 08 8266 8887
M: 0418 824 188
W: www.toop.com.au

Keywords

interest rates, rate cuts, real estate

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