Century 21 Port Douglas Real Estate, believes that the Reserve Bank of Australia’s decision to keep the official interest rate on hold at 3.5 per cent for a second consecutive month will help to continue to stabilise Australia’s residential property market.
“For the second month running we have seen the Reserve Bank hold the official cash rate at 3.5 per cent – a decision that should give property owners a degree of certainty and stability, as well as encourage buyers to enter or re-enter the market,” said Phil Holloway Principal/Licensee of Century 21 Port Douglas Real Estate.
“This decision suggests that the Reserve Bank is comfortable with Australia’s current economic footing which in turn may deliver confidence to many in the property market.”
In its official statement following the announcement, the Reserve Bank cited on-trend GDP growth, on-target inflation and low domestic unemployment as some of the key factors behind the decision.
The Reserve Bank’s decision follows the recent release of RP Data-Rismark’s Hedonic Home Value Index, which showed that median home values across Australia’s capital cities increased by 0.6 per cent in July, off the back of a one per cent rise in June. Similarly, The Australian Bureau of Statistics reported a 0.5 per cent increase in capital city house prices over the June quarter as well as a one per cent rise in retail turnover during June.
“The latest housing and retail growth statistics further indicate that the RBA’s decisions in recent months have helped to improve consumer confidence and activity within various key markets,” continued Mr. Holloway.
“In particular, we have seen capital city home values stabilise – a factor that when combined with relatively low interest rates, should be positive for the property market.