RBA decision likely to bolster confidence in property

Century 21 believes the Reserve Bank's decision to leave the cash rate on hold at 2.5 per cent will bolster confidence in the Australian property market.

"A ninth consecutive month of rates being on hold at 2.5 per cent is positive news for the Australian property market," said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

"This will likely ensure that interest in property increases over the coming months and may encourage more buyers to enter the market."

The Reserve Bank reasoned that it was appropriate to leave the cash rate on hold in light of information suggesting slightly firmer consumer demand over the past summer and foreshadowing of a solid expansion in housing construction.

"Despite high auction clearance rates being reported in some capital cities, the Australian property market shouldn't be regarded as in a 'boom' phase," said Charles Tarbey.

"Century 21 believes that it would only be accurate to call the market as being in a 'boom' phase when auction clearance rates consistently hit 80 per cent nationally.

"With increasing numbers of properties entering the market we may be entering a new and more healthy phase where there is increased negotiation between buyers and sellers," concluded Charles Tarbey.


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.