Cup day rate hold will support housing market

 

Century 21, the largest real estate sales organisation in the Asia Pacific region, believes that the decision by the Reserve Bank of Australia to keep interest rates on hold at 2.5 per cent will continue to support the recovery in the Australian real estate market.

 

“The Reserve Bank’s rate cuts this year have clearly had a strong effect on the market, with auction clearance rates and property values reaching record levels in October,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

 

“Century 21 continues to see strong buyer interest, however, home owners continue to be hesitant to list their properties which is creating a supply and demand imbalance in some areas,” concluded Charles Tarbey.

 

The Reserve Bank’s decision follows the recent release of RP Data-Rismark’s Hedonic Home Value Index results, which saw capital city dwelling values increase by 1.3 per cent in October, driven by large gains in Sydney, Melbourne and Brisbane.

 

As part of its decision, the Reserve Bank reasoned that it was prudent to leave the cash rate unchanged in light of the high Australian dollar, inflation being consistent with target levels and a strengthening residential housing market.

 

Posted by Charles Tarbey on 08/11/2013 at 12:00 AM | Categories:

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