Rate hold may spur vendor interest

Century 21 believes that the decision by the Reserve Bank of Australia to keep interest rates on hold at 2.5 per cent may encourage more Australians to consider placing their home on the market this summer.

“As this decision may draw new buyers to the market, vendors may respond in kind by listing their property to take advantage of a heightened level of interest in this asset class,” said Chairman and Owner of Century 21 Australasia Charles Tarbey.

“This is great news for anyone looking to transact property in Australia, regardless of whether they’re buying their first or fifteenth property,” said Mr Tarbey

As part of its decision, the Reserve Bank reasoned that it was prudent to leave the cash rate unchanged in light of higher than expected inflation, slightly firmer consumer demand and foreshadowing of a solid expansion in housing construction.

The Reserve Bank’s decision follows the recent release of RP Data-Rismark’s Hedonic Home Value Index results, which showed that capital city dwelling values are currently sitting 4.8 per cent higher than their previous peak in October 2010.

 

Posted by Charles Tarbey on 13/02/2014 at 12:00 AM | Categories:

Comments

Write your comment





Leave this field empty: