What The Emergency Action RBA Rate Cut Means For Property

These are indeed challenging times. With the coronavirus outbreak threatening to derail Australia's economy, the Reserve Bank of Australia - RBA took emergency action, cutting interest rates to an unprecedented 0.25% while looking at a quantitative easing plan with a bond purchasing program.

The move is looking towards the future where the virus will be contained and the Australian economy recovering. But in the meantime, the RBA's priorities are to support jobs, incomes and businesses, so when this crisis recedes, the country will be in a great position to recover strongly. While this is a dramatic move, the RBA's decision is clearly acting as a dangling carrot for motivation - one that is unlikely to do very much to ease any pain. In response, the Top 4 Banks have declared allowing borrowers to hit pause on their payments. Every hour and each day sees an update from the government and banks on how they plan to manage the situation.

Meanwhile, right now, there are plenty of buyers and sellers propelling the property market - despite media reports of a pandemic fallout. Momentum will most certainly continue forward with virtual and private inspections, serious buyers cashed up ready to go and serious sellers ready to take this on. While there might be a momentary bottle neck once the situation dies down, the floodgates are sure to reopen, newly charged and stimulated.

Stand strong: we'll get through this together (and don't forget to wash and sanitise your hands) ???