Industry leaders have supported the RBA’s decision to leave interest rates on hold as property prices spiral out of control.
Real Estate Industry of Australia president David Airey said the Reserve Bank had made the right decision to leave the official interest rate on hold given the worsening state of housing affordability.
Recent research by REIA shows house prices have continued to sky rocket over the last 10 years, with current housing affordability at its worse in a decade.
In addition, the level of income required to meet loan repayments has increased 5.8 percentage points to 34.8 per cent in the twelve months to September 2010.
“Given these figures, the breathing space RBA has provided to home owners is welcome news – we need this respite to continue for the foreseeable future,” Mr Airey said.
“REIA will continue to call on all levels of government to address the issue of supply which is an important component of improving affordability.”