Ray White – Market has room for rate increase

THE increase in the official interest rates shouldn’t hurt the housing market, real estate group Ray White says.

Ray White joint chairman Brian White said the Reserve Bank (RBA) had made it clear the near record-low interest rates of 3 per cent had been an emergency measure during the global financial crisis.

“This 0.25 per cent rate rise was expected,” he said.

“I think we can afford a couple of interest rate rises and the confidence in the economy and the real estate market will override any concerns about where rates are headed.”

Ray White said the first home buyers cashing in on the boosted grant scheme had driven the property market during the first half of 2009 but now people were upgrading their homes and property investors were more active.

Mr White said spring already had seen strong residential real estate sales nationwide and auction clearance rates in some suburban Sydney markets had been at over 90 per cent on recent weekends.

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