Century 21, the largest real estate sales organisation in the Asia Pacific region, believes that the Reserve Bank's decision to reduce interest rates to 2.50 per cent should help to further improve conditions for property buyers and mortgage holders leading into the traditionally busy spring selling season.
"For the second time in 2013, the Reserve Bank has elected to cut the cash rate by 25 basis points to bring the official benchmark to a 53- year low of 2.50 per cent," said Chairman and Owner of Century 21 Australasia, Charles Tarbey.
"This decision will likely be a shot in the arm for the property market leading into the spring selling season."
As part of its decision, the Reserve Bank reasoned that it was appropriate to reduce the cash rate in light of inflation moderating over recent months and economic activity.
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 Australia's capital cities rose 1.6 per cent in July 2013, taking the cumulative recovery in residential home values to 6.5 per cent since the market bottomed out in May 2012.
Additionally, the Genworth Homebuyer Index jumped from a record-low of 93.4 points in March 2013 to 100.1 points at the end of July 2013, the highest level the Index has recorded since it was first calculated in 2007.
"Spring has traditionally marked a season of renewed enthusiasm within real estate, and with interest rates at historic lows for the time being, some market spectators may be expecting an increase in buying activity over the coming months," continued Charles Tarbey.
"The seasons of real estate have, however, become much less pronounced in recent times, and the impact of this latest cut will likely depend heavily on consumer sentiment in the lead up to and throughout spring," concluded Charles Tarbey.
Century 21 encourages prospective buyers that are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.
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.