Interest rate update
At its monthly meeting in Sydney, the Reserve Bank of Australia (RBA) elected to hold the official cash rate at 3.5 per cent. This decision was welcomed by CENTURY 21 and we expect that it will help to continue to stabilise Australia’s residential property market.
Speaking on the RBA’s second consecutive monthly rate-hold, Chairman of CENTURY 21 Australasia, Charles Tarbey, said: “For the second month running we have seen the Reserve Bank hold the official cash rate at 3.5 per cent – a decision that should give property owners a degree of certainty and stability, as well as encourage buyers to re-enter the market.”
In its official statement following the announcement, the Reserve Bank cited on-trend GDP growth, on-target inflation and low domestic unemployment as some of the key factors behind the decision.
The Reserve Bank’s decision followed the release of RP Data-Rismark’s Hedonic Home Value Index, which showed that median home values across Australia’s capital cities increased by 0.6 per cent in July, off the back of a one per cent rise in June.
Similarly, The Australian Bureau of Statistics reported a 0.5 per cent increase in capital city house prices over the June quarter as well as a one per cent rise in retail turnover during June.
“The latest housing and retail growth statistics further indicate that the RBA’s decisions in recent months have helped to improve consumer confidence and activity within various key markets,” continued Charles Tarbey.
“In particular, we have seen capital city home values stabilise in many markets – a factor that when combined with relatively low interest rates, should be positive for the property market,” 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, clear advice. Additionally, if you would like to speak to a mortgage professional about the impact of this rate-hold on your mortgage, or to find out more about suitable loan packages for your circumstances, please contact CENTURY 21 Home Loans.