Westpac is one of Australia’s four largest financial institutions, and its chief economist, Bill Evans, is of the mind that historically low interest rates may be dropping even further.
“I think rates are going to continue to come down,” Mr Evans said at the Australian Property Institute’s annual Economic Indicators lunch in Brisbane during the first week of February.
“I’m probably the last drowning man who thinks that’s possible… but my view is that the dynamics that the Reserve Bank described today describing why interest rates are on hold and why they’re likely to rise – I think they’re a little too optimistic around a flaccid world economy.”
Specifically, Mr Evans said he expects two rate cuts between June and December 2014.
Australian Property Investor reported on February 13 that Mr Evans has been one of the real estate industry’s “most accurate predictors of interest rate movements over the past few years,” meaning owners of real estate in Adelaide may want to take notice.
Further rate cuts could spur on home buyer activity even further, making 2014 a great time to explore options related to selling property.
Home sellers in Prospect might find that entering the market sooner rather than later could be the way to go.