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 interest rates on hold in September should bode well for the residential real estate market as the spring selling season commences.
“At its September meeting, the Reserve Bank elected to keep the official cash rate on hold at a historic low of 2.50 per cent,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.
“This move should help to maintain attractive borrowing conditions for prospective property buyers and existing mortgage holders, and may lead to increased buying activity in the coming months.”
The Reserve Bank reasoned that it was appropriate to leave the cash rate on hold, but said it would continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target rate.
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 0.5 per cent in August 2013, to be up 5.3 per cent on August 2012.
“While it’s impossible to be sure of how this latest rate decision will affect market activity, there is a distinct possibility that more buyers will step off the sidelines over spring to take advantage of improving market conditions and increasingly attractive mortgage rates,” concluded Charles Tarbey.
Century 21 encourages prospective buyers that are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.