Agent’s warning to buyers after Tuesday’s rate cut

Buyers are bracing for hotter competition at auctions and are scrambling to get into the market to beat expected price rises resulting from this week’s interest rate cut.

Selling agent Kate Smith, of Kate Smith Property, said interest had already started picking up, and she expected buyer activity to accelerate after Tuesday’s RBA announcement.

“Last Saturday I had an open in Port Adelaide at 4pm and that had 30 groups through in a price point that is that $650,000 to $750,000 level – that’s solid,” she said.

“My expectation is that with this interest rate cut were going to see the market not explode, but really take off – it already is performing exceptionally well but I feel it is going to a whole other level.

“The stock levels are already relatively low, so given that you’ve got a lot of very keen buyers and not much stock I do believe we’ll see a pretty hefty hike in pricing.”

She said buyers were acutely aware the market might get increasingly more difficult for them and this had given them a new sense of urgency to get in now.

“I’ve had a couple of handful of buyers remark to me that they are wanting to get into the market sooner rather than later because they are aware of the fact that prices are going to keep increasing, so I think that urgency from buyers – we’re going to see that escalate over the next quarter,” she said.

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Ms Smith is currently selling the state’s most-viewed (on realestate.com.au) auction property for this weekend – a stunningly renovated home at 58 Prince St, Alberton.

The three-bedroom home will be auctioned at 1pm Saturday and has a price guide of $880,000.

“A lot of the interest has come from younger buyers – first homebuyers or second homebuyers, and a lot of clients who are already established in the area who are looking for properties for their kids or family,” Ms Smith said.

“We’ve had up to 80 groups through over its four opens.

“There’s always a level of unknown with any auction, but it’s always a calculated unknown heading into the day, but I would be expecting we’d get this one sold come auction day.”

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Adelaide is gearing up for another solid auction weekend, with PropTrack data revealing more than 100 properties are set to go under the hammer in the next few days.

According to the data, 109 homes will hit the auction block across the state this weekend – 105 in metro Adelaide and the other four in regional SA.

Athelstone, Glenelg North and Warradale are Adelaide’s hottest auction suburb, with three properties going to auction this weekend.

Andrews Farm, in Adelaide’s north, and Cheltenham in Adelaide’s northwest each have two properties going to auction this weekend.

The other four most viewed SA auction properties for this weekend are 19 Arthur St, Clarence Gardens, 26 Gibbon Lane, North Adelaide, 2 Tenth Ave, St Peters and 4 Tralee Ave, Broadview.

The post Agent’s warning to buyers after Tuesday’s rate cut appeared first on realestate.com.au.