RBA decision to incentivise demand

Century 21, the largest real estate sales organisation in the Asia Pacific region, believes the Reserve Bank's decision to leave the cash rate on hold at 2.5 per cent will incentivise demand as property prices move into a new phase of sustainable growth.

"There has been some suggestion that the heightened activity we've seen in the Australia property market throughout much of the year could potentially have resulted in an upward movement of the cash rate," said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

"However, property price growth in many of our capital cities appears to be stabling out in recent months, suggesting we may be entering a favourable new phase of sustainable growth across the market.

"By maintaining the cash rate at the historically low rate of 2.5 per cent for the fifteenth consecutive month, the Reserve Bank will be incentivising new demand in the market as price growth slows," said Charles Tarbey.

"This is good news for buyers and sellers alike," concluded Charles Tarbey.

In their announcement, the Reserve Bank indicated that growth in wages is expected to remain moderate and inflation is running between 2 and 3 per cent, as expected.


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.