At its monthly meeting in Sydney this week, the Reserve Bank of Australia (RBA) elected to hold the official cash rate at 3.25 per cent. This decision was welcomed by Century 21 and we expect that it will provide some stability for the property market and added confidence for many prospective purchasers in the lead-up to Christmas.
Speaking on the rate hold, Chairman and Owner of Century 21 Australasia, Charles Tarbey, said: ""I believe the decision by the RBA is the correct one in light of economic conditions. What borrowers can take from this decision is that the RBA is reasonably comfortable with the state of the economy, and still has the scope to reduce rates in December should conditions soften."
"This situation should help to give many current homeowners and prospective buyers a degree of confidence as we move towards 2013."
The Reserve Bank's decision follows the recent release of the Australian Bureau of Statistics' (ABS) Buildings Approval data for September 2012, which showed that national building approvals increased by 7.8 per cent over the month. The ABS reported that building approvals were up 12.4 per cent in the year to September.
In its statement following the meeting, the Reserve Bank cited slightly higher-than-expected inflation results and somewhat more positive information on the world economy as some of the key determinates behind the decision.
"In combination with stock levels, rising building approvals and firmer auction clearance rates, this latest rate hold should be an encouraging signal to the residential market," concluded Charles Tarbey.
For more information about the residential property market in your areas of interest, please feel free to stop by your local Century 21 Real Estate office for expert and clear advice. Additionally, if you would like to speak to a mortgage professional about the impact of this rate hold on your mortgage, or to find out more about suitable loan packages for your circumstances, please contact Century 21 Home Loans.