Century 21, a real estate organisation with over 100,000 staff in 78 countries, believes the Reserve Bank's decision to leave the cash rate on hold at 1.5 per cent is prudent in light of signs suggesting growth in the Australian property market may be moderating.
"Record low interest rates have spurred on the property market this year more than many expected," said Charles Tarbey, Chairman and Owner of Century 21 Australasia.
"It appears that conditions in some parts may be starting to cool, influenced by a range of factors such as increased apartment supply and messages from banks about tighter lending conditions.
"This may be most pronounced in the recent fall in dwelling values in the Melbourne market with both apartments and houses recording falls.
"Whilst cheap finance may continue to incentivise real estate activity, I remind Australians to consider the prospect of rate increases in the New Year and carefully contemplate property transactions to ensure debt is manageable over the long term," said Charles Tarbey.
According to CoreLogic analysis, capital city dwelling values rose by 0.2 per cent throughout November. While the headline results remained in positive growth territory, the monthly capital gain reading was also the softest result since December 2015 when capital city dwelling values were unchanged over the month.
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.
