RBA eases into the new year with no change in rates

The property market will react cautiously to the news that the Reserve Bank of Australia has kept the official cash rate on hold today, and buyers may hold off on purchases to see what happens in the coming months, according to the Real Estate Institute of SA.

REISA President, Mr Greg Moulton, said that buyers had increased since the rate falls in 2011 and many were waiting on today’s news before they made a definitive move.

“After a tough two years, the property market has buyers and investors who are positioning themselves to enter the market when the numbers add up so today’s decision may see buyers hold out for another month,” he said.

“During the last two years, REISA members have really noticed that higher interest rates have put a squeeze on South Australian homebuyers. It was a relief that the RBA dropped rates last year which was necessary to stimulate the economy again, but there is still a strong community feeling that a further drop is needed.”

“When the pressure of interest rates is being felt, the biggest impact is seen in the outer suburbs and this has been a factor in the market in recent times.”

“The important thing is that the RBA consider the full economy when making rates decisions and I’m sure they will do this during 2012.”
Media comment – REISA President – Greg Moulton – 0418 661 888

Background information – Emma Slape – 0423 88 11 20