Century 21, the largest real estate sales organisation in the Asia Pacific region, believes that the Reserve Bank of Australia’s decision to keep interest rates on hold will encourage many buyers to make a property purchase in the traditionally busy autumn real estate season.
“At its March meeting the Reserve Bank elected to keep the official cash rate steady at three per cent for a fourth consecutive month,” said Charles Tarbey, Chairman and Owner of Century 21 Australasia.
“This move suggests that the Reserve Bank feels relatively comfortable with current economic conditions which, in combination with relatively low interest rates, should help to provide a level of confidence for buyers looking to secure a property purchase.
“Century 21 is starting to see a lot of buyers get off the fence and this decision should only increase that trend.”
As part of its decision, the Reserve Bank reasoned that it was prudent to leave the cash rate unchanged in light of recent economic information, the expected rate of inflation and the fact that there had been a substantial easing of monetary policy in recent decisions.
The Reserve Bank’s decision follows the recent release of RP Data-Rismark’s Hedonic Home Value Index results, which showed that median home values In Australia’s capital cities rose 0.3 per cent in February, following a 1.2 per cent increase in January.
“In terms of the Australian residential property market, we have seen a decent rise in capital city dwelling values and excellent auction clearance rates pick up to levels not seen since mid-2010,” continued Charles Tarbey.
“For the time being, buyers can take advantage of another month of rates on hold at attractive levels,” concluded Charles Tarbey.