Century 21, the largest real estate sales organisation in the Asia Pacific region, believes the Reserve Bank’s decision to leave the cash rate on hold at 2.5 per cent will bolster confidence in the Australian property market
“A ninth consecutive month of rates being on hold at 2.5 per cent is positive news for the Australian property market,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.
“This will likely ensure that interest in property increases over the coming months and may encourage more buyers to enter the market.”
The Reserve Bank reasoned that it was appropriate to leave the cash rate on hold in light of information suggesting slightly firmer consumer demand over the past summer and foreshadowing of a solid expansion in housing construction.
“Despite high auction clearance rates being reported in some capital cities, the Australian property market shouldn’t be regarded as in a ‘boom’ phase,” said Charles Tarbey.
“Century 21 believes that it would only be accurate to call the market as being in a ‘boom’ phase when auction clearance rates consistently hit 80 per cent nationally.
“With increasing numbers of properties entering the market we may be entering a new and more healthy phase where there is increased negotiation between buyers and sellers,” concluded Charles Tarbey.