Rates hold could create stability
CENTURY 21 believes Tuesday's decision by the Reserve Bank of Australia to leave the official cash rate on hold will help to create ongoing stability for those Australians considering the purchase of a property.
"At its April meeting the Reserve Bank of Australia elected to keep the official cash rate at 4.25 per cent for the third consecutive month," said co-owner of Century 21 Marsden Realty Sam Marsden.
"This move suggests the Reserve Bank of Australia feels relatively comfortable with current economic conditions for the time being and, at a time of comparatively low interest rates, will encourage many Australians to act on a property purchase."
The Reserve Bank's decision follows the recent release of the RP Data-Rismark Hedonic Home Value Index which suggested that the Australian housing market may be showing signs of stabilising, with home values increasing 0.2% in March 2012.
In addition, the Index saw that the market has remained unchanged for the quarter ending March 31 - the strongest result since March 2011 (which saw a 0.7% rise in values).
"While we must note that much of the improvement seen in the housing market is due in part to the Sydney market which rose 1.1% over the quarter, we are nonetheless seeing signs of a potential stabilisation of home values," Mr Marsden said.
"Other factors such as strengthening auction clearance rates and improving demand from first home buyers are certainly encouraging indicators of both the current state of the national housing market and the potential for continued improvements over the course of 2012." concluded Mr Marsden.