At its monthly meeting in Sydney, the Reserve Bank of Australia elected to reduce the official cash rate by twenty-five basis points to three per cent. This decision was welcomed by Century 21 and we expect that it will encourage prospective buyers to make property purchases in the lead up to Christmas and during the holiday season.
The Reserve Bank's latest decision brings interest rates to their lowest levels since September 2009.
Chairman and Owner of Century 21 Australasia, Charles Tarbey, said the decision should be an excellent shot in the arm for the residential property market and the economy at large as we move into the new year.
As part of its decision, the Reserve Bank mentioned subdued investment outside of the resources sector and the role that further easing in the stance of monetary policy would play in fostering sustainable growth in demand and inflation outcomes.
With the spring selling season now over, December will likely be a key period for real estate with many buyers and sellers aiming to have relevant inspections completed and property transactions finalised before the end of the year.
"For those prospective property buyers who have been in a position to make a purchase this year but have refrained from doing so, this rate reduction could be the final encouragement needed to act on a suitable purchase," continued Charles Tarbey.
"This rate cut will also likely help to ease the financial pressures felt by many Australian property owners and mortgage holders, particularly in the lead-up to the often expensive Christmas period," concluded Charles Tarbey.
The Reserve Bank will not meet to decide on interest rates again until February 2013.
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 clear and expert advice. Additionally, if you would like to speak to a mortgage professional about the impact of this rate cut on your mortgage, or to find out more about suitable loan packages for your circumstances, please contact Century 21 Home Loans.