BUT YOU CAN EXPECTED AN INCREASE SOON…..REAL SOON
Century 21 Port Douglas Real Estate believes today’s decision by the Reserve Bank of Australia to keep the official cash rate on hold at 4.75 per cent is positive for the residential property market but buyers and home owners need to prepare for a rate increase over the coming months.
The RBA’s decision was appropriate for current conditions however many economic indicators suggest that an increase in interest rates will be necessary in the near term.
With clearance rates low and plenty of stock on the market, the Reserve Bank’s decision makes an attractive environment for property buyers.
However, it is important for home owners and buyers to recognise the possibility of a rate rise and prepare to meet the pressures of the increased interest repayments that could eventuate.
Economic conditions including weak consumer spending and the collective impact of natural disasters both domestically and in Japan helped to ensure that the RBA kept rates on hold for the six month in a row.
However, with official inflation figures recently displaying a surprising jump of 1.6 per cent in consumer prices over the first quarter, along with strong growth expectations for the mining sector, the RBA may be required to act and increase rates