Century 21, the largest real estate company in the Asia Pacific region, believes that the Reserve Bank of Australia’s decision to keep interest rates on hold this month will encourage prospective buyers to think seriously about making a property purchase over the traditionally busy spring selling season which has just commenced.
The Reserve Bank chose to keep the official cash rate at 3.5 per cent for a third consecutive month.
“Century 21 is currently seeing a lot of stock coming through the pipeline as the spring selling season commences and the decision by the RBA may provide an added incentive for those in a position to buy property to be active during this usually busy period,” said Charles Tarbey, Chairman of Century 21 Australasia.
“Property prices have largely stabilised this year, there is adequate stock to choose from and with the ability to lock in relatively low interest rates – buyers would appear to have a number of conditions working in their favour,” concluded Charles Tarbey.
Following its September meeting, the RBA released an official statement citing on-target inflation forecasts, on-trend GDP growth and a more subdued international outlook as some of the key determinates behind its decision.
The decision follows the recent release of RP Data-Rismark’s Hedonic Home Value Index data, which showed that capital city home value growth remained flat over August, but had increased by 1.6 per cent in the three month period preceding September.