Agents rejoice as record low tipped to boost Gympie market
THE Reserve Bank's historic interest rate cut on Tuesday has been welcomed by Gympie real estate agents who said it should restore market confidence.
RBA governor Philip Lowe announced rates would be slashed by 25 points this week, from their previous low of 1.5 per cent to a record setting 1.25 per cent.
Anchor Realty's Steph West and Tina Tillinger said the cut was a positive move for the market and continued the region's market rise.
"It's a slow steady increase,” Ms West said.
"I think the growth was 2.3 per cent but the median change in house price from 2017-2018 for Gympie was 6.3 per cent.
"There is definitely a slow increase that we think will continue to buck the trends of Sydney, Melbourne and Brisbane without creating decreases in house prices.”
Ms Tillinger said roughly 90 per cent of Anchor Realty's clientele are from out of Gympie.
"It's really exciting to see what future lies ahead for this town because it's kinda becoming the next hotspot for people of higher markets,” she said.
It's the first time since 2004 that Ms Tillinger has seen the market grow.
"It's extremely exciting to see where it is heading,” Ms West said.
It still raised challenges for banks, though.
"If the bank regulators do what they're suggesting and start relaxing some of the lending criteria .... a reduction to interest rates will bring some more confidence back into the market,” Ms West said.
"We do need that positive injection because the banks have been holding people back and people don't want to hold back. We're going to multiple offers at least once a month on our listings and the last time that happened was in 2004.”
It's important to note that if you're looking to purchase a property, all buyers needing finance will need to get pre-approval.
"Banks are looking at your spending habits very closely with a fine tooth comb,” she said.
"Before the commission, they weren't really looking thoroughly if people could afford those loans, whereas now they are monitoring people's spending habits for the past three months and I guess they are being more responsible to see if people can afford the loan now and in the long term.”
The median house prices increased 10.61 per cent for those living on the Southside last year.
”People love it because you have much newer brick houses and you have bigger blocks. It's a very friendly area and it has its own shopping area. If you're looking for acreage, definitely Pie Creek,” Ms Tillinger said.
"We love this town and this market.
Real Estate is affected by politicians, reserve bank and employment, but the majority of our purchases would be the early retirees. They come here for the lifestyle, a really good quality home and the money left over. We're slowly rising which is good to see.”