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Prospective sellers biding their time

The global economic recovery could encourage more homeowners to sell their property this year.

Homeowners wishing to sell their houses are biding their time and waiting for the fallout of the recent interest rate cuts to die down before putting their properties on the market.

This is the opinion of Catherine Cashmore of Property Observer, who says interest rates are not likely to be the main driver of long-term changes in house prices, which is why sellers would be wise not to make a move as a knee-jerk reaction to recent fluctuations in real estate sector.

The Reserve Bank reduced the interest rate to three per cent in December of last year, precipitating a flurry of activity within the property sector, and speculation is rife that further rate cuts could be on the way when the board next meet in February.

However, Ms Cashmore insists this will not be necessary, and says the overall recovery of the global market is more likely to bring about long-term stability to the Australian property sector, bringing with it house price increases that should encourage more homeowners to sell their properties.

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