The Reserve Bank’s decision not to change interest rates is good news for the property industry, with further improvements likely in the housing market. This is a great time to be looking at property in Brisbane.
After its first meeting for 2014 the RBA announced it would keep the cash rate on hold at 2.5 per cent.
LJ Hooker deputy chairman Janusz Hooker said this was positive news for the housing market.
He said strong house price growth along Australia’s east coast meant there had been little chance of a change in interest rates today.
“While inflation and unemployment will need to be monitored, the already historically low cash rate is continuing to have a positive impact on the market,” he said.
“Demand for housing has driven prices over summer – what was once traditionally one of the quietest periods for real estate.”
Mr Hooker said for their group in January unconditional sales were up 21 per cent on last year.
“Property is buoyant and it is now spreading to regional areas on the east coast but there are still some slow markets such as Tasmania.”
Loan Market director Mark De Martino said the decision to leave rates on hold since August last year, had given the home finance industry the stability to encourage buyers and sellers back to the market.
“Homeowners and buyers of this generation haven’t likely seen a period of interest rates this low for this long. It’s been a very unique time period,” he said.
Few in the property industry expected rates to change this month.
RP Data national research director Tim Lawless said the housing market would remain buoyant while rates remained low.
He said the latest housing market results showed that values were still rising across Australia and those improved conditions had provided a substantial flow on affect to the housing construction sector.
Developer confidence had also improved with dwelling approvals up for 2013 and a consistent rise in new home sales figures.
Mortgage Choice spokesman Jessica Darnbrough said there was evidence that both house prices and housing activity were responding well to the low interest rate environment.
“We expect the RBA to err on the side of caution and leave the cash rate untouched for the foreseeable future.”
Original article published at www.news.com.au by Michelle Hele, News Limited Network 4/2/2014