Century 21, the largest real estate sales organisation in the Asia Pacific region, believes that yesterday’s decision by the Reserve Bank of Australia to leave the official cash rate on hold will help to create ongoing stability for those Australians considering the purchase of a property.
“At its April meeting the Reserve Bank of Australia elected to keep the official cash rate at 4.25 per cent for the third consecutive month,” said Owner and Chairman of Century 21 Australia, Charles Tarbey.
“This move suggests the Reserve Bank of Australia feels relatively comfortable with current economic conditions for the time being and, at a time of comparatively low interest rates, will encourage many Australians to act on a property purchase.”
The Reserve Bank’s decision follows the recent release of the RP Data-Rismark Hedonic Home Value Index which suggested that the Australian housing market may be showing signs of stabilising, with home values increasing 0.2 per cent in March 2012.
In addition, the Index saw that the market has remained unchanged for the quarter ending 31 March 2012 – the strongest result since March 2011 (which saw a 0.7 per cent rise in values).
“While we must note that much of the improvement seen in the housing market is due in part to the Sydney market which rose 1.1 per cent over the quarter, we are nonetheless seeing signs of a potential stabilisation of home values,” continued Charles Tarbey.
“Other factors such as strengthening auction clearance rates and improving demand from first home buyers are certainly encouraging indicators of both the current state of the national housing market and the potential for continued improvements over the course of 2012,” concluded Charles Tarbey.