Century 21, the largest real estate sales organisation in the Asia Pacific region, believes that the decision by the Reserve Bank of Australia (RBA) to keep the official cash rate on hold will provide some stability for the property market and added confidence for many prospective purchasers in the lead-up to Christmas.
“I believe the decision by the RBA is the correct one in light of economic conditions. What borrowers can take from this decision is that the RBA is reasonably comfortable with the state of the economy, and still has the scope to reduce rates in December should conditions soften,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.
“This situation should help to give many current homeowners and prospective buyers a degree of confidence as we move towards 2013.”
The Reserve Bank cited slightly higher-than-expected inflation results and somewhat more positive information on the world economy as some of the determinates behind the decision.
The Reserve Bank’s decision follows the recent release of the Australian Bureau of Statistics’ (ABS) Buildings Approval data for September 2012, which showed that national building approvals increased by 7.8 per cent over the month. The ABS reported that building approvals were up 12.4 per cent in the year to September.
“In combination with stock levels, rising building approvals and firmer auction clearance rates, this latest rate hold should be an encouraging signal to the residential market,” concluded Charles Tarbey