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 cut the official cash rate to three per cent will encourage prospective buyers to make property purchases in the lead up to Christmas and during the holiday season.
“The Reserve Bank yesterday acted to reduce the official cash rate by 25 basis points, bringing interest rates to their lowest levels since September 2009,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.
“Should the banks pass on the cut, this decision should be an excellent shot in the arm for the residential property market and the economy at large as we move into the new year.”
As part of its decision, the Reserve Bank mentioned subdued investment outside of the resources sector and the role that further easing in the stance of monetary policy would play in fostering sustainable growth in demand and inflation outcomes.
With the spring selling season now over, December will likely be a key period for real estate with many buyers and sellers aiming to have relevant inspections completed and property transactions finalised before the end of the year.
“For those prospective property buyers who have been in a position to make a purchase this year but have refrained from doing so, this rate reduction could be the final encouragement needed to act on a suitable purchase,” continued Charles Tarbey.
“This rate cut will also likely help to ease the financial pressures felt by many Australian property owners and mortgage holders, particularly in the lead-up to the often expensive Christmas period,” concluded Charles Tarbey.