RBA leaves cash rate on hold at 1.5 per cent but for how long

RBA rate hold: 1.5%

CENTURY 21, a real estate organisation with over 100,000 staff in 78 countries, believes that whilst the Reserve Bank of Australia (RBA) has decided to leave cash rates on hold for now, Australians would be wise to prepare for rate hikes in the short to medium term. 

“Last month the US Federal Reserve raised interest rates for the third time in six months,” said Charles Tarbey, Chairman and Owner of CENTURY 21 Australasia. 

“While Australia’s monetary setting is higher than that of the US, the ongoing strength of the Australian economy has many pundits suggesting that rate rises may be around the corner. 

“With this in mind, people might want to consider creating a buffer within their loans while ensuring they don’t overextend themselves when making property purchases,” said Charles Tarbey.  

The RBA noted in minutes from last month’s meeting that the Australian economy is expected to strengthen gradually. The broad-based pick-up in the global economy is continuing, and the rise in commodity prices over the past year has boosted Australia’s national income.

The CoreLogic Quarterly Auction Market Review has reported that clearance rates across the combined capital cities fell 3.1 per cent, from 74.8 per cent over the first quarter to 71.7 per cent at the end of June quarter this year.

CENTURY 21 encourages potential buyers who are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.

With over 3,000 offices, CENTURY 21 is the largest real estate sales organisation in the Asia Pacific region, a region vital to Australia’s continued economic success.

Posted by Administrator on 01/08/2017 at 2:34 PM | Categories:

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