Century 21 believes that the decision by the Reserve Bank of Australia to reduce interest rates to 2.75 per cent will to help create an ongoing incentive for those Australians looking to purchase or refinance property.
"At its May meeting, the Reserve Bank elected to cut the official cash rate by 25 basis points to 2.75 per cent - taking the benchmark to its lowest level in over fifty years," said Chairman and Owner of Century 21 Australasia, Charles Tarbey.
"This decision, which will come as welcome news to Australian borrowers and those in a position to purchase a property, should have a positive impact on buyer activity in the property market."
As part of its decision, the Reserve Bank reasoned that that a further reduction in the cash rate was appropriate to encourage sustainable growth in the economy, consistent with achieving the inflation target.
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 fell 0.5 per cent in April.
"Despite the April decline in house prices, 2013 has so far been a very positive period for Australia's housing market with capital city dwelling values rising 2.8 per cent over the first three months of the year," 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 suitable loan packages, please contact Century 21 Home Loans.