Rate hold may spur vendor interest

Century 21 believes that the decision by the Reserve Bank of Australia to keep interest rates on hold at 2.5 per cent may encourage more Australians to consider placing their home on the market this summer.

"As this decision may draw new buyers to the market, vendors may respond in kind by listing their property to take advantage of a heightened level of interest in this asset class," said Chairman and Owner of Century 21 Australasia Charles Tarbey.

"This is great news for anyone looking to transact property in Australia, regardless of whether they're buying their first or fifteenth property," said Mr Tarbey

As part of its decision, the Reserve Bank reasoned that it was prudent to leave the cash rate unchanged in light of higher than expected inflation, slightly firmer consumer demand and foreshadowing of a solid expansion in housing construction.

The Reserve Bank's decision follows the recent release of RP Data-Rismark's Hedonic Home Value Index results, which showed that capital city dwelling values are currently sitting 4.8 per cent higher than their previous peak in October 2010.


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.