Century 21, the largest real estate organisation in the Asia Pacific region, believes that purchasing conditions for prospective residential property buyers could be set to improve over coming months, particularly if the Reserve Bank of Australia elects to cut interest rates at its February meeting.
The possibility of the Reserve Bank making such a decision was strengthened with the recent release of inflation data from the Australian Bureau of Statistics, which showed that the Consumer Price Index was unchanged for the December quarter 2011- after increasing 0.6 per cent in the September quarter 2011.
“The conditions we are seeing at present are helping to create a window of opportunity for those home buyers and investors who are in a financial position to buy and who have sought the appropriate professional advice,” said Chairman and Owner of Century 21 Australia, Charles Tarbey.
“And with many pundits believing that this latest measure of inflation from the Australian Bureau of Statistics gives the Reserve Bank room to make a third consecutive cut to interest rates, buyers could be placed at a further advantage if savings are passed on by lenders.”
The Consumer Price Index, released by the Australian Bureau of Statistics on a quarterly basis, is the principal inflation indicator used by the Reserve Bank in its deliberations concerning the official cash rate.
According to Century 21, the unchanged CPI, which was a better result than many experts had anticipated, contributes to a series of favourable market circumstances for would-be home buyers and investors.
“The number of residential properties on the market across the country continues to be strong, and with numerous potential buyers refraining from making a decision for the time being, those who are ready to purchase should have a fair amount of room for negotiation,” continued Charles Tarbey.
“With attractive mortgage packages available, I would encourage those in a position to act to certainly explore the purchase and financing options available to them,” concluded Charles Tarbey.