February 2013: Reserve Banks keeps interest rates at three per cent

Century 21 believes that the decision by the Reserve Bank of Australia to keep interest rates on hold at three per cent, will likely encourage the national housing market by continuing to make finance and refinance options attractive to buyers.

"At its first meeting for 2013, the Reserve Bank elected to keep interest rates on hold, following four rate cuts last year that clearly had a positive effect on the national housing market," said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

"Century 21 is starting to see some green shoots appearing in the residential property market and this decision, combined with other attractive buying conditions, bode well for the market in 2013.

"This decision will likely help to keep Australia's housing market on a modest growth trajectory, and also give the Reserve Bank more scope to cut rates should conditions deteriorate in the coming months," concluded Charles Tarbey.

As part of its decision, the Reserve Bank reasoned that it was prudent to leave the cash rate unchanged in light of recent economic information, the expected rate of inflation and the fact that there had been a substantial easing of monetary policy in recent decisions.

The Reserve Bank's decision follows the recent release of RP Data-Rismark's Hedonic Home Value Index results, which showed that median home values in capital cities rose 1.2 per cent in January, taking the annual movement in dwelling values back into positive territory with a 1.8 per cent increase over the past twelve months.

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 and clear advice. Additionally, if you would like to speak to a mortgage professional about suitable loan packages, please contact Century 21 Home Loans.


Disclaimer: The opinions posted within this blog are those of the writer and do not necessarily reflect the views of CENTURY 21 Australia, others employed by CENTURY 21 Australia or the organisations with which the network is affiliated. The author takes full responsibility for his opinions and does not hold CENTURY 21 or any third party responsible for anything in the posted content. The author freely admits that his views may not be the same as those of his colleagues, or third parties associated with the CENTURY 21 Australia network.