Earlier this week on Tuesday 3rd February the Reserve Bank of Australia (RBA) decided to lower the cash rate by a further 25 basis points to 2.25 per cent, taking interest rates to the lowest we have seen in forty years. Prior to this, speculation for the real estate market in 2015 has fast become the hot topic of conversation for many Australian economists and property experts, and this latest cut proved no exception.  

Prior to the RBA’s recent interest rate cut, economist, Steven Keen, says he envisaged Australia’s so-called property bubble continuing throughout 2015. A bold statement, which prompted a response from property depreciation expert, Tyron Hyde, who claims he doesn’t agree with Keen.

Also on the 3rd of February, Hyde made a Guest Observation on the Property Observer website clearly stating, “I’m glad I didn’t listen to you Mr Steven Keen.”  Hyde then went on to remind everyone of Professor Steven Keen’s vision to “sell up” back in 2008 - because the property market was overpriced.

“Do you remember when Professor Steven Keen, (the economist, author and renowned pessimist when it comes to property), was selling his house because he thought the property market was overpriced? I do. The year was 2008.

“I remember seeing him on TV (A Current Affair or Today Tonight) doing a walk-through of his apartment and explaining to the reporter how overpriced the market is and it’s time to sell,” recalls Hyde.

Hannah Schuhmann, Principcal of HS Brisbane Property says she agrees with Hyde on this one.

“This is an interesting observation from Hyde because since 2008 to 2014 (alone) property prices were up by 14 per cent, an indication that Keen’s earlier 2008 'the Australian market is overpriced’ statement was, and still remains, untrue” said Schuhmann.

Hannah further believes that the property market in Brisbane is only getting stronger and stronger and this is evident in the increased enquiries and the buoyant sales prices we are continuing to see in our city.

“With the continuing activity and this weeks’ cut to interest rates, there is renewed confidence in the market and this is absolutely set to see an increase in purchasers coming into the buying process.  Low rates mean more affordability and we are likely to see a scramble for great inner city units as astute investors make the most of these conditions and look to buy!  This is of course music to the ears for those thinking of selling also!” said Hannah.

For more information on what this means for you, contact Hannah today for an informal discussion on 0419 782 133.