Rate hold as selling season begins
CENTURY 21 Marsden Realty co-principal Geoffrey Jordan 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," Mr Jordan said.
"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.
"We are 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% increase in January.
"In terms of the Australian residential property market, we have seen a combined 1.5% rise in capital city dwelling values over the past two months and auction clearance rates pick up to levels not seen since mid-2010," he said.
"For the time being, buyers can take advantage of another month of rates on hold at attractive levels."
Century 21 encourages potential buyers that are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.